GameStop surges 30% in after-hours on reported NFT plans

GameStop surges 30% in after-hours on reported NFT plans

GameStop’s (GME) inventory surged as a lot as 30% in after hours after a report that the online game retailer is launching a market for non-fungible tokens (NFTs), a transfer which had been telegraphed final yr. 

GameStop can be reportedly creating partnerships with two crypto firms to “share expertise and co-invest within the growth of video games that use blockchain and NFT expertise, in addition to different NFT-related tasks,” according to people familiar with the plans who spoke to the Wall Street Journal.

Final yr, CEO Matt Furlong gave a teaser about plans involving non-fungible tokens and crypto. 

“We have additionally been exploring rising alternatives in blockchain, NFTs and Internet 3.0 gaming,” Furlong mentioned throughout the earnings name in December.

Months in the past, Web sleuths had seen firm job descriptions which included “NFT” and “Internet 3.0.” The video-game retailer additionally has a link on the GameStop URL soliciting creators for an NFT market. 

GameStop has been a ‘meme’ inventory favourite amongst retailer buyers during the last yr. It was the third most searched ticker in all of 2021 behind Tesla (TSLA), and AMC (AMC). Shares of AMC, one other ‘meme’ darling, had been additionally up greater than 10% in after-hours. 

GameStop is present process a turnaround plan underneath Chairman Ryan Cohen, the co-founder of e-commerce platform Chewy (CHWY). 

Cohen, often called “Papa Cohen” by the retail dealer crowd, has been hush-hush about his technique.

“We are attempting to do one thing that no person within the retail area has ever achieved,” Cohen mentioned on the firm’s annual assembly in June of final yr. 

GameStop went by a C-Suite overhaul over the summer season, with Amazon (AMZN) veterans Matt Furlong appointed as CEO and Mike Recupero as CFO.

In December, the corporate introduced it had established new places of work in Seattle and Boston, describing the areas as “expertise hubs with established expertise markets.”

Just lately, GameStop and different meme favorites have been underneath strain together with different dangerous belongings and progress names, over considerations of Fed price hikes this yr. 

Ines is a markets reporter overlaying shares from the ground of the New York Inventory Change. Observe her on Twitter at @ines_ferre

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