Proactive Investors - GameStop Corp (NYSE:GME) shares retreated pre-market after the video game retailer posted a decline in quarterly sales for the first quarter and said it would sell up to 75 million shares.
The company, which had been expected to report its Q1 results on June 11, traded down 16.5% at about $39 before the opening bell on Friday.
GameStop said in a regulatory filing that it will sell up to 75 million shares per an exiting open-market sale agreement through which it has already sold 45 million shares, yielding about $993 million in proceeds.
For Q1, the company's sales fell to $882 million from $1.24 billion in the year-ago quarter, missing Wall Street analyst estimates of $995.3 million.
GameStop did narrow its net loss to $32.3 million or an adjusted loss per share of $0.12 from $50.5 million in the same period in 2023, but this was greater than the adjusted loss per share of $0.09 expected by analysts.
Earlier in afterhours trading, the stock had added as much as 35% on top of Thursday's 47% rally on the news that Keith Gill, the investor known as “Roaring Kitty,” would be returning to livestream.
Gill, who sparked the original meme stock rally with his bullish comments on social media, has not live-streamed since 2021.