Meme GameStop stock tumbles as revenue slips fans doubt recovery By Reuters

(Reuters) – Shares of GameStop (NYSE: ), a widely watched meme stock, fell 10 percent in premarket trading on Wednesday after the video game retailer reported a bigger drop in quarterly revenue, putting doubt the ability to revitalize his business.

The company, which is hotly watched by retail investors following a meme stock frenzy in early 2021 that sent its stock to dizzying levels, has tried to restructure by operating a smaller chain of stores and focusing on selling more value-added items to boost. sales and profitability.

GameStop’s 31% drop in revenue in its most recent quarter overshadowed a shift toward net profit. It also announced a plan to sell up to 20 million shares to finance the acquisitions.

GameStop raised just over $3 billion in stock sales in May and June, taking advantage of wild swings in its stock following bullish bets by Keith Gill, also known as “Roaring Kitty,” who was a key figure in the so-called — Reddit meeting.

Shares more than doubled in May after Gill returned from a three-year hiatus and then plunged 40% in June after Gill’s live stream failed to sustain investor interest.

Still, the stock is up about 34% this year through Tuesday. It was trading at $21.14 in pre-market trading on Wednesday.

Shares of GameStop hit an intraday peak of nearly $121 in January 2021, up from about $10 a few days earlier, in a roller coaster ride for investors, before falling nearly 90% in the month next.