GameStop Shakes its 5-Day Losing Streak After Reporting Earnings

Struggling video game retailer GameStop, who has been headlining much of 2021, broke a 5-day losing streak on Thursday when the stock soared about 50%.

GameStop’s share price saw a significant jump after falling 33% in the previous session after the company reported fourth quarter results.

Wall Street was also concerned on Wednesday when the company failed to give in-depth detail about its turnaround plans. To make matters worse, GameStop also revealed that it is considering selling more stock.

This year shares of GameStop have been on a wild rollercoaster ride, mostly influenced by retail traders on Reddit and social media platforms pumping the stock up.

The stock rallied as high as over $400 a share back in January before seeing roughly a 90% drop shortly after.

GameStop reported net sales of $2.1 billion during the quarter, which was down 3% from the same period in the prior year. It was also below the $2.2 billion Wall Street analysts had expected, according to Refinitiv.

Net income from the quarter hit $80.5 million, or $1.19 per diluted share, also below analysts’ projections. It was an improvement compared to the $21 million in net income it earned during its fiscal fourth quarter last year.

For the full year 2020, GameStop posted a net loss of more than $215 million.

Global e-commerce sales increased 175%, representing 34% of the company’s total net revenue during the quarter. During the same period last year, e-commerce were only 12% of total sales.

“Our emphasis in 2021 will be on improving our e-commerce and customer experience, increasing our speed of delivery, providing superior customer service and expanding our catalogue,” CEO George Sherman stated.

Other popular Reddit influenced trades were higher on Thursday as well including Koss, which climbed almost 50%, and AMC Entertainment, which gained 24%.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.