Business

GameStop Stock Drops as Q1 Revenue Declines and Sales Plans Disappoint

Jun 7, 2024 1 min read

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GameStop Corp. reported a loss of $32.3 million in Q1, or 11 cents per share, for the period ended May 4, compared to a $50.5 million loss the previous year. Revenue declined significantly due to weakened sales in hardware and accessories, software, and collectibles. Hardware and accessories sales fell 30.4% year-over-year to $505.3 million, while software sales dropped 29.1% to $239.7 million. Despite the financial setbacks, GameStop's stock saw initial gains before falling approximately 7% to $43.10 following the earnings report.

In an effort to raise capital, GameStop filed paperwork with securities regulators to sell up to 75 million shares of stock. The company’s cash, cash equivalents, and marketable securities were reported at $1.08 billion at the close of the quarter. The announcement came shortly after Keith Gill, known as "Roaring Kitty" on social media platforms YouTube and X, announced a forthcoming YouTube livestream on June 7, 2024, sparking speculation that he may own a significant number of GameStop shares. Despite a surge in stock price leading up to Gill's announcement, GameStop continues to face challenges as the industry shifts towards digital downloads and video game streaming.

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