December 23, 2024

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GameStop stock slides after reporting a quarterly financial loss

GameStop stock slides after reporting a quarterly financial loss

GameStop remains a popular property among retail investors eager to snap up “meme stocks,” but its financial results remain cool.

Video game vendor on Friday mentioned A loss of $32.3 million on revenue of $882 million in the fiscal first quarter, compared to a loss of $50.5 million on sales of $1.2 billion in the same period last year.

“Although the numbers were ugly (a sharp decline in year-over-year sales and a net loss, along with free cash flow of approximately $115 million), they were largely in line with the 5/17 pre-announcement.” Analyst Adam Crisafulli of Vital Knowledge said in a research note.

The company’s stock fell $7.44, or 16%, before the start of trading on Friday.

GameStop shares have soared in recent weeks after Keith Gill, a popular trader who promotes his results online under the monikers “Roaring Kitty” and “DeepF_Value,” appeared on social media after a long hiatus. Earlier this month, Gill posted a screenshot on a Reddit forum showing he had a rough cut $116 million In GameStop stock.

In its latest jump, the company’s stock price rose 47% on Thursday to close at $47.55 when Gill’s Roaring Kitty’s YouTube channel scheduled a live stream on June 7, which would be his first appearance on the platform in three years.

GameStop stock also rose in May when Gill, a financial analyst turned influencer, posted a message picture On the X, indicating that he will return to the public eye.

Before Jill’s rise to popularity, GameStop saw sales decline amid an industry-wide shift away from game cartridges to video game streaming and digital downloads.