GameStop, the popular “meme stock” among retail investors, continues to make headlines as its financial results show a cooling trend. In its fiscal first quarter, the video game seller reported a loss of $32.3 million on revenue of $882 million, compared to a loss of $50.5 million on sales of $1.2 billion in the same period last year.
Analyst Adam Crisafulli of Vital Knowledge noted that while the numbers were disappointing, they were largely in line with expectations following a preannouncement in May. Despite the financial challenges, GameStop’s stock has been on a rollercoaster ride, with shares soaring in recent weeks.
The resurgence of popular trader Keith Gill, known as “Roaring Kitty,” on social media has been a driving force behind the stock’s recent gains. Gill, who owns roughly $116 million in GameStop shares, has been actively promoting the stock on platforms like Reddit and YouTube.
GameStop’s stock price jumped 47% on Thursday as Gill announced a livestream on his Roaring Kitty YouTube channel, marking his first appearance on the platform in three years. This follows a previous spike in May when Gill hinted at his return to the public eye.
Before Gill’s involvement, GameStop had been struggling with declining sales as the gaming industry shifted towards digital downloads and streaming. Despite the recent volatility in its stock price, GameStop’s future remains uncertain as it navigates a rapidly changing market landscape.