GameStop shares decline by more than 25%

Shares of the American video game retailer GameStop continued their sharp declines during Friday’s trading on the Wall Street Stock Exchange, after record highs on Tuesday, May 14, with a brief recovery in meme stock trading.

According to CNBC, the company’s share price fell during Friday’s trading session by about $7.15, or 25.84%, to reach $20.52.

The company announced the sale of up to 45 million Class A ordinary shares in the market, while preliminary results showed a decline in its sales during the first quarter of 2024.

The company said, in a statement, that it expects first-quarter net sales to range from $872 million to $892 million, down from about $1.24 billion in the same quarter last year. Two analysts surveyed by FactSet said they expect first-quarter revenue to be about $1 billion, according to CNBC.

GameStop’s net loss in the first quarter is expected to range between $27 million and $37 million, which is less than a net loss of $50.5 million in the same period a year earlier.