GameStop Sinks After Unexpectedly Releasing Results, Issuing More Shares
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Key TakeawaysGameStop 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.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 when shares fell more than 39%.
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
Analysts' 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 SharesGameStop 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. 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. During Friday's livestream, he showed hundreds of thousands of viewers his portfolio, which consisted of a GameStop position first revealed on Reddit on Sunday. The position at the time had unrealized gains of more than $140 million.GameStop shares closed 39.4% lower on Friday after soaring 47.5% on Thursday.UPDATE—This story has been updated with details about Keith Gill's livestream and to reflect Friday's closing price. Read the original article on Investopedia.
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