GameStop shares fall after reporting quarterly financial loss

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.

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