June 16, 2024

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GameStop stock fell after it reported a quarterly financial loss

GameStop stock fell after it reported 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, with hardware, software and collectibles sales declining. This compares to a loss of $50.5 million on revenues 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.

In morning trading, the company’s shares fell $11.83, or 25%, to $34.73.

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.

Roaring Kitty is back

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.

GameStop reported net sales of $5.2 billion for fiscal 2023, down from $5.9 billion the previous year. But the company swung to a profit of $6.7 million in 2023, reversing a loss of $313.1 million in fiscal 2022.

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