GameStop jumps 10% despite 3rd-quarter earnings miss as CEO says the meme-stock favorite will consider acquisitions

• GameStop stock jumped 10% on Thursday despite the game retailer's third-quarter earnings miss.
• The meme-stock favorite's CEO said that the company is considering acquisitions.

GameStop stock surged 10% on Thursday despite the video game retailer's weak fiscal third-quarter earnings.

Late Wednesday, the meme-stock favorite reported a loss of 31 cents a share on sales of $1.19 billion. Comparisons against Wall Street forecasts are tricky as the consensus consisted of only two estimates, but analysts predicted a loss of 29 cents a share on sales of $1.39 billion.

The company's cash and cash equivalents also shriveled to just $804 million from $1.4 billion a year ago, according to results from the quarter ending on October 29.

But CEO Matt Furlong said GameStop is eyeing potential acquisitions in a mission to "accomplish something unprecedented in the retail sector."

"Maintaining a sizable cash position will maximize our optionality and keep us strong against the challenging economic backdrop," he said on an earnings call Wednesday. "If a strategic asset or complimentary business becomes available in the right price range, we want to be able to explore those acquisitions."

GameStop shares saw a massive rally in last year's meme-stock craze, helping the company come back from the brink of bankruptcy. It's now seeking to transform from a brick-and-mortar chain to focus on e-commerce and crypto.

But the meme-stock trend has died down, and despite Thursday's rally, GameStop shares are down 35.8% year-to-date.

The third-quarter earnings miss follows reports of forthcoming layoffs of staff focused on its crypto-focused efforts, according to Axios on Monday. GameStop launched a non-fungible token, or NFT, marketplace earlier this year, including its own crypto wallet.