GameStop Sinks After Unexpectedly Releasing Results, Issuing More Shares

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.

GameStop Issuing More Shares

GameStop 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.