- GameStop Corp. stock struggled after reporting weak Q4 2023 financial results, and its performance continued to drop.
- The video game retailer announced earnings of $0.22 a share and US$1.79 billion in revenue, compared with US$2.22 billion in Q4 2022
- Customers used to flock to the store for gaming hardware and accessories, but that has dropped 12 per cent year-over-year to US$1.09 billion from Q4 2022’s US$1.24 billion
- GameStop shares last traded at US$13.17 per share
GameStop Corp. (NYSE:GME) stock struggled after reporting weak Q4 2023 financial results, and its performance continued to drop.
The video game retailer announced earnings of $0.22 a share and US$1.79 billion in revenue, compared with US$2.22 billion in Q4 2022. Wall Street economists had expected earnings of $0.30 per share and sales of US$2.05 billion.
Net sales for its fiscal 2023 were US$5.27 billion, compared with US$5.92 billion for its fiscal year 2022.
Customers used to flock to the store for gaming hardware and accessories, but that has dropped 12 per cent year-over-year to US$1.09 billion from Q4 2022’s US$1.24 billion, while its main source of income, software, had dropped 31 per cent to US$465 million, where it was US$670 million in Q4 2022.
As the gaming industry shifts away from physical copies of media to digital downloads, the store chain’s sales have dropped. Once known as a “meme stock,” traders on Reddit sent its stock soaring nearly three years ago, causing billions in losses for the hedge funds that bet against the gaming retailer.
According to its 10-K filing, the company’s board of directors have handed over control of its investments to a committee led by its CEO, billionaire investor Ryan Cohen, who is their fifth CEO in as many years and is its largest individual shareholder.
GameStop Corp. is a U.S. video game, consumer electronics and services retailer. The company operates across Europe, Canada, Australia and the United States. It sells new and second-hand video game hardware, physical and digital video game software, and video game accessories.
GameStop shares lost more than 15 per cent and last traded at US$13.17 per share. The company’s stock is down more than 6 per cent in the past month and is down more than 42 per cent since this time last year.
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