Jim Cramer, the host of CNBC’s “Mad Money,” took a jab at GameStop Corporation GME for not holding an earnings call. This comes after the company reported its fourth-quarter financial results, which resulted in a nearly 17% drop in its stock price after trading hours.
What Happened: Cramer expressed his amusement at GameStop’s decision not to hold an earnings call, comparing it to Berkshire Hathaway’s approach. This was revealed in a tweet on Wednesday following the company’s Q4 results.
GameStop’s Q4 net sales amounted to $1.794 billion, a decrease from the $2.226 billion reported the previous year. This figure fell short of the $2.05 billion consensus estimate. The company’s earnings per share for the quarter were 22 cents, missing the Street’s 29 cents per share estimate.
For the full fiscal year, GameStop’s net sales were $5.273 billion, down from $5.927 billion the previous year. The company ended the quarter with $1.2 billion in cash and no long-term debt outside of a loan related to the COVID-19 pandemic.
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Price Action: GameStop’s shares fell by 17% to $12.89 in after-hours trading on Tuesday, compared to a 52-week trading range of $11.82 to $27.65, according to the data from Benzinga Pro.
Why It Matters: GameStop’s decision not to hold an earnings call has also raised eyebrows, with Cramer’s comments adding to the scrutiny. This comes amid ongoing discussions about the company’s future and its efforts to transition into a more digital-focused business.
Despite the drop in stock price, GameStop has been a key player in the market, with its stock price often compared to that of Dogecoin DOGE/USD. The company’s performance continues to be closely monitored by investors and analysts alike.
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