Video game retailer and leading meme stock GameStop (GME) has reported third-quarter earnings that missed analysts’ expectations across the board.
As has become common, GameStop’s share price rose following its latest earnings miss, jumping 2% in after hours trading following the company’s announcement that its revenue declined 8.5% in the third quarter from a year earlier.
GameStop said its Q3 net sales totaled $1.19 billion U.S., lower than Wall Street forecasts for $1.39 billion U.S. in sales.
The company’s loss per share amounted to $0.31 in the quarter, worse than the $0.29 loss expected.
GameStop blamed its latest earnings miss on a downturn in gaming coming out of the COVID-19 pandemic. Sales at the company’s bricks-and-mortar retail outlets have also been hurt by gamers shifting from buying game discs to digital downloads.
Media reports earlier this week said that GameStop has begun another round of job cuts, with an emphasis on the team that is building its cryptocurrency wallet.
GameStop is a notorious meme stock. During the pandemic, retail traders bid up certain stocks based on comments posted to Reddit site WallStreetBets and other social media platforms.
So far this year, GameStop’s stock has declined 42% to $22.26 U.S. per share.
