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GameStop shares fall after reporting quarterly financial losses
GameStop remains a popular property among retail investors eager to snap up the “meme stock,” but its financial results continue to cool.
The video game seller on Friday reported a loss of $32.3 million on revenues of $882 million in its fiscal first quarter, compared to a loss of $50.5 million on sales of $1.2 billion in the same period a year ago.
“While the numbers were ugly (a sharp drop in sales year-over-year and a net loss along with business free cash flow of approximately $115 million), they were largely in line with the pre-announcement of 17 /05,” said Vital Knowledge analyst Adam Crisafulli in a research note.
GameStop shares have soared in recent weeks after Keith Gill, a popular trader who posts his results online under the nicknames “Roaring Kitty” and “DeepF_Value,” resurfaced on social media after a long hiatus. Earlier this month, Gill posted a screenshot on a Reddit forum showing that he has approximately US$116 million in GameStop shares.
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In its last jump, the company’s share price rose 47% on Thursday to close at $47.55 when Gill’s Roaring Kitty YouTube channel scheduled a live stream on June 7, which would mark her first appearance on the platform in three years.
GameStop shares also soared in May when Gill, a financial analyst turned influencer, posted a image in X, suggesting he was returning to the public eye.
Before Gill’s rise to popularity, GameStop had experienced a decline in sales amid an industry-wide shift from game cartridges to video game streaming and digital downloads.
The company’s shares fell $4.25, or more than 9%, before trading began Thursday.
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