GameStop Shares Tank After Earnings Miss and Tesla Shares Fall as Company Allows Purchases with Bitcoin
On Wednesday, shares of GameStop tanked, closing down 33.79%.
Shares of the video game retailer plunged after reporting lackluster fourth-quarter earnings.
GameStop reported an EPS of $1.34 per share, below analysts’ expectations of $1.46. The company reported revenue of $2.12 billion, below analysts’ expectations of $2.24 billion. Global e-commerce sales skyrocketed 175%.
CEO George Sherman said in a statement, “We are off to a strong start in 2021 as February comparable store sales increased 23%, led by continued strength in global hardware sales.” Following the earnings release, management held a 20-minute conference call without revealing anything that excited investors.
Shares of GameStop are up over 500% this year.
On Wednesday, shares of Tesla fell, closing down 4.82%.
Shares of the electric vehicle maker fell as CEO Elon Musk tweeted, “You can now buy a Tesla with Bitcoin.”
Musk stated that the bitcoins won’t be converted into American currency but will stay as bitcoins.
In terms of how you pay, Tesla has a FAQ that explains the procedure. Customers must first pay with bitcoin from their wallet by scanning a QR code or pasting the bitcoin address and exact bitcoin sum into the wallet. The cost of a vehicle deposit is calculated using current market rates, with the value of Tesla’s vehicles remaining in US dollars. If the payment is made, Tesla will give you confirmation.
Shares of Tesla have fallen over 10% this year.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.