Earlier today, GameStop (GME) released its Q4 2020 earnings report, detailing its net sales and other information about the final quarter of its 2020 fiscal year. Following the release of that report, CEO George Sherman spent around twenty minutes discussing the company’s current plans for 2021, as well as discussing some of the current moves we’ve been seeing in the company’s executive lineup. What Sherman didn’t discuss, though, is the ongoing volatility of the GME stock, which has continued to see dips and rises over the past several months.
If you’ve somehow managed to miss the saga about how WallStreetBets, a subreddit group, has rallied behind GameStop stock, then you don’t have to worry too much. There are already multiple documentaries and movies planned to help shed light on the subject, but it has been an interesting thing to watch happen. In fact, just last week, we saw GME stock trading halted multiple times as prices dropped from $340, sparking yet another stint in the spotlight for WSB and its movement.
GameStop has found itself in headlines a number of times recently, including two weeks ago when Chewy cofounder Ryan Cohen joined the company’s board, causing the stocks to rise again. Since then, we’ve seen multiple days of dips and rises, leading to more calls from WallStreetBets and others rallying behind the stock to hold on and ride it to the moon.
Because of how volatile the stock has continued to be over the past several months, it may have been disappointing for Sherman to not mention the stock at all on the call. Instead, he focused on much of the same information that was released in the earnings results, as well as highlighted the company’s push into PC and television sales. It also looks like the push towards online has helped the company, as it reported a growth of 34 percent in e-commerce sales. Previously e-commerce sales had only accounted for 12 percent of the company’s net sales in 2019’s fourth quarter.
We’ll continue to keep our eyes on GameStop and GME both. For now, though, it looks like Sherman is holding off on making any official comments on investor-related calls about the ongoing roller coaster that we’ve seen the stock riding throughout the first several months of 2021.