GameStop (NYSE:GME) declined in pre-market trading after the meme crowd favorite reported its first-quarter results. The video game retailer saw its revenues plunge by 28.7% year-over-year to $882 million. Meanwhile its adjusted loss narrowed to $0.12 per share in Q1, compared to a loss of $0.14 per share in the same period last year.
At the close of the first quarter, the company’s cash and cash equivalents stood at $1.083 billion. However, the company’s selling, general, and administrative expenses increased as a percentage of sales to 33.5% of net sales in the first quarter, compared to 27.9% of net sales in the same period last year.
The company’s announcement of its Q1 results was a surprise as it was expected to announce its Q1 results later this month. Later today, meme stock influencer Keith Gill, aka “Roaring Kitty,” will do a YouTube livestream, marking his return after three years. This has revived the 2021 meme stock frenzy for the GME stock, although on a smaller scale. Gill, a central figure then, had posted a $116 million bet on GameStop.
Is GameStop Stock a Buy or Sell?
Overall, only one analyst has covered GME stock over the past three months and is bearish about the stock with a Sell rating. The rally in meme stocks has seen GME stock skyrocketing by more than 100% year-to-date.
