GameStop (NYSE:GME) is clearly preparing for something big, although people don’t seem to quite know what. Recently, the video game retailer turned a number of heads with an announcement regarding its non-fungible token (NFT) marketplace.
Yesterday, as markets closed, the company posed a question on its GameStopNFT Twitter account: “Ready to explore more of GMERICA?” This references the company’s NFT collection. GameStop didn’t provide much more information about this update, but it did list a specific date and time. While GME stock is falling today, the cryptic tweet has garnered considerable attention from the GameStop community.
What exactly should fans and investors be watching for? Let’s take a closer look.
What’s Happening With GME Stock?
Last week, GME stock soared after the company reported surprisingly positive earnings. However, GME has since fallen steadily for the past five days, demonstrating that last week’s meme stock rally is definitely over. Shares haven’t made any real progress this week, even after GamestopNFT tweeted the following:
Ready to explore more of GMERICA?
– Wednesday, March 29th, 2023
– 1:00PM EST
— GameStopNFT (@GameStopNFT) March 27, 2023
The way it looks from here, GameStop is preparing to expand its GMERICA 1 NFT collection. As of this writing, the collection features 5 NFT images of 8-bit-style cityscapes displaying scenes from New York City, Boston, Seattle, Hollywood and Cape Canaveral. The collection currently includes over 400 NFTs for sale.
Will an update to this collection do much for GameStop or GME stock? That doesn’t seem likely. In December 2022, the company announced it would be significantly scaling back its NFT and crypto operations after taking losses in the millions. More recently, when analyzing GameStop’s growth prospects, InvestorPlace’s Thomas Yeung reported:
“GameStop’s new management [has failed] to reinvigorate the business. Its belated push into NFTs, Web 3.0 gaming, and cryptocurrency has fallen short. And revenues continue to decline as gamers migrate to buying digital versions. The company needs an Elon Musk-like personality to shake up its business.”
Unless the company’s new NFT expansion includes just such a person, its unlikely that tomorrow’s news will do much to help GME stock. If this were happening during the red-hot NFT market of 2021, however, it may have been a different story.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.