Market News

GameStop Jumps 23% on Crypto & NFTs Plans – Report

GameStop Corp. (NYSE: GME) is on the verge of launching a division to develop a marketplace for trading nonfungible tokens (NFTs), the Wall Street Journal reported. 

Following the news, shares of the American video game, consumer electronics, and gaming merchandise retailer jumped 22.7% in the extended trading session on Thursday. 

According to the source, more than 20 people have been employed for the new division, which is expected to be launched later this year. The company plans to build a marketplace for NFTs of virtual videogame goods, including avatar outfits and weapons. Notably, GameStop has asked selected game developers and publishers to list NFTs on its marketplace once it is launched. 

Additionally, partnership deals with two crypto companies are reportedly in pipeline, with additional collaboration agreements expected in the future to develop games that use NFT and blockchain technology.

Wall Street’s Take  

Recently, Ascendiant analyst Edward Woo reiterated a Sell rating on the stock and lowered the price target to $23 (82.45% downside potential) from $24. 

The rest of the Street is bearish on the stock, with a Moderate Sell consensus rating based on 2 Holds and 2 Sells. The average GameStop price target of $34 implies 74.05% downside potential to current levels. Shares have decreased around 31.5% over the past six months. 

Website Traffic 

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, offers insight into GameStop’s performance this quarter.  

According to the tool, the GameStop website recorded a 29.91% fall in global visits in November compared to the same period last year. Also, a quarter-to-date comparison showed a decrease of 29.91% compared to Q4 2020, and the year-to-date website traffic decline stands at 4.21%.

Download the TipRanks mobile app now

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