GameStop Stock Slipped 12% After Dismal Earnings

GameStop Corp

GameStop Corp (NYSE:GME) shares extended their decline on Monday, falling about 12% after a brutal Friday sell-off triggered by a disappointing earnings report.

GameStop Stock Graph

GameStop News

  • The video game retailer’s stock dropped to around $25 per share on Monday, following a near 40% plunge on Friday.
  • GameStop released worse-than-expected earnings earlier than scheduled, revealing a 29% sales drop in Q1.
  • The company also announced an additional offering of 75 million shares.

Roaring Kitty Live Stream Fails to Ignite

  • Keith Gill, the meme stock champion known as “Roaring Kitty,” hosted his first livestream in several years on Friday.
  • He disclosed having no institutional backing and that the GameStop positions he shared previously were his only holdings.
  • While reiterating his bullish stance, Gill offered little new justification for his large stake in the company.

Analyst Remains Skeptical on Turnaround

  • Wedbush analyst Michael Pachter expressed continued doubt about GameStop’s ability to achieve a meaningful turnaround, citing recent strategic failures.
  • Pachter pointed to the departures of the entire C-suite and the flops of past strategies, including emulating Amazon’s model (after hiring and then losing key Amazon executives) and selling NFTs through the now-defunct FTX partnership.

Short-Term Boost, Long-Term Concerns

  • Pachter believes the influencer boost from Gill might be temporary, potentially keeping the stock afloat long enough to complete the share offering.
  • However, with no clear path forward, the analyst predicts a renewed decline towards his revised price target.

GameStop Highest Stock Price

  • GameStop’s stock price has reached significantly higher levels in the past. The all-time high closing price was $86.88 on January 27, 2021.
  • This is a far cry from the current price. The 52-week high for GameStop is $64.83, which is still 161.1% above the current share price.
  • On the other hand, the stock has also traded much lower in the past year. The 52-week low was $9.95, which is 59.9% below the current price.

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