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.