The ongoing saga regarding the GameStop stock continues as the video game retailer has revealed an early Q1 earnings report, as influential personality Keith Gill, better known as Roaring Kitty, has seen his holders just miss $1 billion. Indeed, the company unveiled $881 million in net sales, which is down from $1.2 billion at this time in 2023.
The timing of the announcement and the revelation of the aforementioned 29% sales decline are of interest to many. Specifically, the company’s trajectory was set to make Gill a billionaire before markets opened Friday. That proved not to be the case, as GameStop had fallen 20% prior to opening.
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GameStop Announces Decline in Q1 Earnings in Early Announcement
In 2021, one of the most interesting stock developments of all time began. Indeed, one Reddit user named Roaring Kitty facilitated the birth of the movement when he orchestrated a short squeeze on stock for the popular video game seller, GameStop.
Fast forward to 2024, and the saga is continuing to unfold. With that same user coming back for the first time in years and setting off renewed interest in the shares. However, the entire story took an interesting turn on Friday. Specifically, GameStop had revealed an early Q1 earnings report, which then forced Roaring Kitty’s GME holdings to just miss $1 billion.
Also Read: Jim Cramer Defends ‘Roaring Kitty’ Amidst GameStop Position
There had been rampant discussions regarding the rising value of Gill’s holdings. However, at the start of Friday trading, the retailer took a hit and failed to reach the $65 price that was necessary for Gill to turn his $116 million investment into $1 billion.
The earnings report that incited the falling price was released four days earlier than expected. Although it was interesting, it didn’t come as a massive surprise. The company had already released preliminary results in May. The company has stated its executives will not be holding a press conference, as investors will now have to wait to hear from GameStop brass on the decision.
Overall, the revealed earnings report showcased a 29% drop in sales. That figure was much steeper than many Wall Street analysts had anticipated. Subsequently, GME shares are currently down more than 20%, and trading at $36.9, according to Yahoo Finance.