GameStop remains a hot asset among retail investors eager to acquire the “meme stock,” but its financial results continue to cool.
The video game retailer on Friday reported a loss of $32.3 million on revenue of $882 million in its fiscal first quarter, compared with a loss of $50.5 million on revenue of $1.2 billion in the year-ago period.
“While the numbers were ugly (steep year-over-year revenue decline and a net loss, along with negative free cash flow of ~$115 million), they were largely in line with the May 17 pre-announcement,” Vital Knowledge analyst Adam Crisafulli said in a research note.
GameStop shares have soared in recent weeks after Keith Gill, a popular trader who touts his results online under the names “Roaring Kitty” and “DeepF_Value,” resurfaced on social media after a long hiatus.
During the latest jump, the company’s stock price rose 47% on Thursday to close at $47.55 when Gill’s Roaring Kitty YouTube channel scheduled a livestream on June 7, which would mark his first appearance on the platform in three years.
GameStop shares also spiked in May when Gill, a financial analyst turned influencer, posted image on X, suggesting he returned to the public eye.
Before Gill became popular, GameStop had been dealing with declining sales amid an industry-wide shift from gaming cartridges to video game streaming and digital downloads.
The company’s shares fell $4.25, or more than 9%, ahead of the start of trading Thursday.
