:max_bytes(150000):strip_icc()/GettyImages-2155930930-823540a6515b4e94a4893d90e2c5fa50.jpg "GameStop Stock Sinks After Unexpectedly Releasing Results, Issuing More Shares")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2155930930-823540a6515b4e94a4893d90e2c5fa50.jpg)
Key Takeaways
- GameStop unexpectedly announced its first-quarter fiscal 2024 report before the bell Friday, with results falling short of analysts’ expectations.
- The surprise report came hours before meme-stock influencer Keith Gill’s first livestream in three years, scheduled for noon ET.
- GameStop also announced it was going to issue up to 75 million shares in addition to its recent sale of 45 million shares, which brought in more than $900 million.
- GameStop’s recent stock volatility continued Friday, with shares sinking 21% about 30 minutes before the opening bell.
GameStop (GME) unexpectedly announced its first-quarter fiscal 2024 report before the bell Friday, with results falling short of analysts’ expectations, contributing to the stock’s recent volatility.
The company reported quarterly net sales of $882 million, down from $1.24 billion in the year-ago period and below analysts’ expectations of $900 million, according to consensus estimates compiled by Visible Alpha.
Net losses came in at $32.3 million or 11 cents per share, narrowing from last year’s $50.5 million or 17 cents per share, but slightly wider than analysts’ projections.
| Q1 FY24 | Analyst Estimates for Q1 FY24 | Q1 FY23 | |
| Revenue | $882 million | $900 million | $1.24 billion |
| Diluted (Loss) Per Share | (11 cents) | (10 cents) | (17 cents) |
| Net (Loss) | ($32.3 million) | ($30.6 million) | ($50.5 million) |
GameStop Issuing More Shares
GameStop said in a Securities and Exchange Commission (SEC) filing it would sell up to 75 million additional shares on top of the 45 million shares it recently sold for more than $900 million.
The company had previously said that it would report first-quarter results after market close June 11. GameStop said it would not hold an earnings call after disclosing results Friday.
The unexpected earnings came hours before meme-stock influencer Keith Gill’s first livestream in three years, scheduled for noon ET Friday. Gill, known as “Roaring Kitty” on YouTube and “DeepF—ingValue” on Reddit, was one of the key players in the 2020 and 2021 meme-stock craze. Gill recently began posting again after a roughly three-year hiatus, sending GameStop shares surging and contributing to the stock’s volatility.
GameStop shares were down more than 21% at $36.50 about 30 minutes before the opening bell Friday after closing 47.5% higher Thursday. The stock has more than doubled year-to-date.