GameStop has been eager to pick up “meme stock” among retail investors, but its financial results continue to cool.
Video game salesman on Friday reported It lost $32.3 million on revenue of $882 million in its fiscal first quarter, with declining sales of hardware, software and collectibles. That compared with a loss of $50.5 million on revenue of $1.2 billion in the year-ago period.
“Although the numbers were ugly (steep Y/Y sales decline and net loss, w/neg. free cash flow of ~$115MM), they were largely in line with the prior announcement on 5/17.” Adam Crisafulli, analyst at VitalKnowledge, said in a research note.
The company’s stock fell $11.83, or 25%, to $34.73 in morning trading.
GameStop shares have surged in recent weeks after popular trader Keith Gill, who touts his results online under the names “Roaring Kitty” and “DeepF_Value,” resurfaced on social media after a long hiatus. Earlier this month, Gill posted a screenshot on a Reddit forum $116 million In GameStop stock.
Return of Roaring Kitty
In its recent upswing, the company’s stock price has risen 47% on Thursday Gill’s Roaring Kitty YouTube channel finished at $47.55 as it plans a June 7 livestream, which will mark its first appearance on stage in three years.
GameStop’s stock also rose in May, with financial analyst Gill becoming an influencer. Picture In X he said he was returning to the public eye.
Before Kill’s popularity, GameStop experienced an industry-wide decline in sales from game cartridges to video game streaming and digital downloads.
GameStop reported net sales of $5.2 billion for its 2023 fiscal year, down from $5.9 billion a year earlier. But it reversed a loss of $313.1 million in fiscal 2022 and posted a profit of $6.7 million in 2023.
