GameStop shares rose after the company released preliminary second-quarter results showing profits well above expectations, driven by a conversion of its derivative position in eBay into shares. The gaming retailer expects profits between $290 million and $310 million, up from $168 million a year ago, with the eBay conversion alone booking $238 million. GameStop now holds more than 43 million eBay shares worth nearly $5 billion. However, net sales are expected to decline to $780 million to $800 million from $972 million last year, and the company also anticipates a loss on its crypto holdings. The preliminary results were announced alongside an amendment to its $1.4 billion debt-for-stock swap, which fixes the share count. Final results are due on September 8th.
GameStop Corp.GameStop's Q2 profit beats estimates due to eBay stake conversion and debt-for-stock swap amendment.
eBay IncGameStop's conversion of derivative position into eBay shares and holding worth nearly $5 billion is a financial event for eBay, but not central to the news.
