GameStop: ‘World will be taken by storm’ by NFT gaming, YouTube host says – Yahoo Finance | NFTRADIUS

YouTube Host Matt Kohrs joins Yahoo Finance Live to discuss fourth quarter earnings for GameStop as well as the expectations for the company’s NFT marketplace launch.

Video Transcript

EMILY MCCORMICK: And we want to stick with the topic of GameStop with our next guest. And for that, we’re bringing into our stream YouTube host Matt Kohrs. Matt, thank you so much for stopping by this morning. For GameStop, this was a top line beat, bottom line miss, with a surprise quarterly loss, not to mention the official announcement on GameStop’s NFT marketplace. What do you think investors should really be taking away from this report last night?

MATT KOHRS: I mean, investors and we’re even seeing it in the market right now with that bottom line miss, but yet, GameStop’s in the green to the tune of I believe roughly 5%, as we’re speaking live. And it comes back to what GameStop is and the saying around it– can’t stop, won’t stop, GameStop. And I’m being a little bit jokey there, but in all reality, I think it’s very much a future-looking thing.

As Matt Furlong, the CEO, even said, he’s looking at, how do we embrace the new movements in technology, particularly in the world of gaming? And I’m particularly extremely bullish on this NFT marketplace. And I just think the world would be taken storm by play-to-earn games. And I think GameStop, with its very passionate support base, is going to be in the perfect position to really, I guess, capitalize on this movement.

EMILY MCCORMICK: Well, talk to us a little bit more about your expectations for this NFT marketplace, because as Ines Ferre was just breaking down, this earnings call was only about 10 minutes long. We didn’t necessarily get a whole lot of details about what this is actually going to look like, except for the fact that it’s going to be launching by the end of the fiscal second quarter. What do you think this is going to ultimately take shape as for GameStop, and what is this going to mean for its future?

MATT KOHRS: I think– let me take that second part first. So for quite a while– and this was a big thing of why. Like you mentioned, a lot of analysts aren’t watching it. And way back when, there were a considerable amount of short interest because they were looking at it. It was brick and mortar, and there’s a rise in e-commerce. And I think what they’re– and when I say they, I’m referring to the leadership team at GameStop. They’re seeing that there is going to be this pivot, and we should be focusing more on e-commerce.

So I like that. I like this new direction of, OK, how can they take that side of the business by storm? And I think they’re going to execute on it through the NFT marketplace because I think NFTs will continue to rise, especially first in this play-to-earn sector. So for example, over the past year, we saw people, a lot of people in Southeast Asia, replacing their entire yearly income with play-to-earn games.

To me, this is a very, very natural partnership. And they’re going to be executing it with the company from Australia, referred to as Immutable X. So– and also in a partnership with Loopring so that’s going to be kind of like the technology powerhouse behind how they pull off this NFT marketplace. But there’s so many things aligning.

Year over year, we’re seeing e-sports grow at a rapid pace. We’re seeing NFTs, and last year, they did roughly $23 billion in transactional volume, according to DappRadar. And now we’re seeing a company that clearly has that meme fervor behind it, where people are going to be really excited as they start to pull this stuff off. In my own non-financial advice opinion, I’m seeing a lot of things aligned, which is making me diamond hand my GME shares even more.

EMILY MCCORMICK: And yet, at the same time, GameStop still produced a loss in what’s supposed to be its busiest quarter during the holiday shopping season. It also didn’t issue guidance for the full year or the current fiscal quarter. What do you think this says about where the company is at right now, and really, just the lack of visibility that many investors who would be buying this or selling this on fundamentals don’t have a whole lot to grasp on to right now?

MATT KOHRS: That’s very fair. So historically, over the past, I believe, four to six quarters, they actually haven’t been taking any questions or guidance. So for this particular one, I don’t think it was really out of tune of what we’ve seen over the past year and other large companies. Like, for the longest time there, not even Apple is doing it because we’re in a scenario for various reasons on a global scale of why many companies don’t want to do future guidance. So I didn’t find that bothersome.

Of course, I wanted them to be popular. I know this same quarter or the year before, they were net profitable to the tune of 80 million. And then this last one, it was a loss of 147. But they were citing supply chain issues, once again, like many other companies, not only in the US, across the globe. But I think this is a big difference right now of when we’re looking at investments and trades from, let’s say, the old guard to the new guard. I would say, referring to retail especially, it’s super future forward-looking.

That’s what we want. It’s more of like, OK, we understand that the previous quarter, the supply chain issues, they didn’t execute it. But the excitement of why GME’s green right now and why the market has spoken on being up 5% is because of the excitement surrounding this NFT marketplace, which is a multibillion dollar industry already.

EMILY MCCORMICK: And speaking of the retail investor here, bigger picture– what is your take on the meme trade as it stands now and where it’s going to be going? For GameStop and for others like, for AMC, for BlackBerry, Bed, Bath & Beyond, et cetera, are we still going to see this period where these stocks move in a way that is decoupled, to a degree, from the fundamentals and the results that we have in this moment?

MATT KOHRS: I think there is a very legitimate argument for that. And to further explain on what I mean, it’s very common that when people were talking about fundamental value, they would just use the term value. They’re like, what is the value of this company? And of course, we can get into a deep philosophical debate of what provides value, but I think with the rise of retail traders, the rise of the retail trading revolution that we’re seeing right now and has been going over for the past year, we’re seeing that value is not only fundamental value, which you might or might think it’s overvalued, undervalued, but clearly, there’s now a value to community.

And stocks like you just listed have an immense community support, which I think we’ve seen it in the charts and these impressive gains that has to be having at some quantifiable level to the overall value. So I think that’s the big thing that typical fundamental breakdown is kind of missing out on, is when you have this massive community support, clearly, it can add a couple of percentage point gains in a very crazy fashion.

EMILY MCCORMICK: And we appreciate your insight this morning. YouTube host Matt Kohrs, thank you again so much for your time.

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