GameStop managed to pare its losses in the first quarter, but the video game retailer’s revenue fell due to slowing sales of hardware and accessories, software and collectibles.
The results were released shortly after the man at the center of the pandemic action craze, known as “Roaring Kitty” on social media platforms YouTube and X, revealed he would host a broadcast live on YouTube Friday.
GameStop Corp. lost $32.3 million, or 11 cents per share, for the period ended May 4. A year earlier, it lost $50.5 million, or 17 cents per share. Its adjusted loss was 12 cents per share.
Quarterly sales fell to $881.8 million from $1.24 billion a year ago.
The company, which was due to report quarterly results on Tuesday, said it would not hold a conference call on Friday to discuss its financial performance.
GameStop also filed documents with securities regulators to sell up to 75 million shares. In the filing, GameStop noted that between February 4 and June 6, the closing price of its shares ranged between $10.01 and $48.75 and that daily trading volume ranged from $1.7 million. shares to nearly 207 million shares. “During this period, we have not experienced any material change in our financial condition or results of operations that would account for such price volatility or trading volume.” Since January 2021, “the price of our common stock has experienced extreme price fluctuations that do not appear to be based on the underlying fundamentals of our business or our results of operations.”
In premarket trading, GameStop shares went from a big gain to losses of about 7% at $43.10 after the earnings release.
GameStop’s disclosures of its first-quarter financial results and stock sale come after Keith Gill, better known as “Roaring Kitty,” announced he would host a YouTube livestream Friday at noon HEY. Investors following the company’s stock will be looking to see if Gill talks about his position in GameStop stock, as was the case earlier this week. speculation that he could own a large number of shares of the video game retailer potentially worth millions.
Gill also goes by the name Deep F- – – – – – Value on Reddit. On Sunday evening, the Reddit account shared a screenshot on the r/SuperStonk forum that people are speculating could be an image of the shares and call options Gill holds in GameStop. The image shows that Gill could own 5 million shares of GameStop worth $115.7 million at Friday’s closing price. The screenshot also shows 120,000 call options in GameStop with a $20 strike price that expires on June 21. The call options were purchased at approximately $5.68 apiece.
Additionally, Gill’s X account posted a photo of a reversed card from the popular game Uno on Sunday evening. No text accompanied the image.
This activity took place approximately three weeks after Gill appeared online for the first time in three years, increasing the price of GameStop at the time. In May, the “Roaring Kitty” account posted an image on X of a man sitting forward in his chaira meme used by gamers when things get serious.
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Stoppage of play in 2021, it was a video game retailer struggling to survive as consumers quickly switched from discs to digital downloads. Large Wall Street hedge funds and major investors were betting against him, or selling his shares short, believing that his shares would continue on a drastic downward trend.
Gill and those who agreed with him changed the trajectory of a company that seemed headed for bankruptcy by buying back thousands of GameStop shares in the face of almost every accepted metric that told investors the company was in trouble. serious difficulty.
This began what’s known as a “short squeeze,” when large investors who had bet against GameStop were forced to buy its rapidly rising shares to offset their massive losses.
