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 Its fiscal first quarter saw a loss of $32.3 million on revenue of $882 million, compared with a loss of $50.5 million on sales 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 to $9.70, or nearly 21%, in early trading on Friday.
GameStop shares have surged in recent weeks following the re-emergence of popular trader Keith Gill, who touts his results online under the names “Roaring Kitty” and “DeepF_Value,” on social media after a long hiatus. Earlier this month, Gill posted a screenshot on a Reddit forum $116 million In GameStop stock.
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.
