Yesterday, GameStop (NYSE:GME) teased a major non-fungible token (NFT) announcement. Specifically, GamestopNFT posed the following question on Twitter: “Ready to explore more of GMERICA?” The tweet also noted that the announcement would come on March 29 at 1:00 p.m. Eastern. While the news didn’t impact GME stock much, it did generate quite a bit of interest from the digital investing community.
Today, the video game retailer delivered on this promise with the launch of GMERICA V2, an expansion of its original NFT collection. The second edition features new 8-bit-style NFTs, similar to those of the first.
Despite the launch of the new NFTs, however, GameStop shares trended downward all day. Let’s dive deeper into this news and what fans should be watching for.
GME Stock After GMERICA V2
Even as GME stock fell today, GMERICA V2 did garner some interest. The same investors who remain firmly behind GameStop seem to be happy about its new NFT expansion. A sample of the 8-bit digital artworks can be seen in the tweet below:
Pack your bags and get ready to explore more of GMERICA 🗺️
New locations = New adventures
GMERICA V2 is live now! https://t.co/zHM2asB0aM pic.twitter.com/u9mUM7DTUK
— GameStopNFT (@GameStopNFT) March 29, 2023
What will the launch of a new NFT collection mean for GME stock in the long run, though? The short answer is likely not much. In late 2022, GameStop conceded that its plan to expand its crypto and NFT marketplace hadn’t worked. In fact, it led to the company reporting almost $160 million in losses between March and June 2022.
Even after that, the company hasn’t quite given up on NFTs, but that doesn’t mean investors should relax. GameStop has a better chance of experiencing another short squeeze than it does of driving growth through NFTs, an investment vehicle that many investors just don’t care about anymore.
Even less encouraging is the fact that GameStop’s new business model looks dangerously like the old one that wasn’t really working before. InvestorPlace’s Thomas Yeung notes that “unless its management can find new growth streams,” GME stock won’t likely see a turnaround.
At the very least, today’s performance is a good indicator that the market doesn’t care whether GameStop expands its NFT offerings.
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.
