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 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.

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