sales and narrowing losses, even as many investors continue to fixate on the company's "meme stock" clout over business performance. The company also announced two Amazon veterans would be joining the company as chief executive officer and chief financial officer.
Shares traded 5% lower during the after hours session before paring some losses.
Here were the main results from GameStop's report compared to consensus estimates compiled by Bloomberg:
Q1 Revenue: $1.28 billion vs. $1.17 billion expected and $1.02 billion Y/Y
Q1 Adjusted loss per share: 45 cents vs. 71 cents expected and $1.61 Y/Y
GameStop, one of the original names to be pushed higher during a frenzy of retail investor activity earlier this year, has seen a renewed wave of interest online in recent weeks. Traders on platforms including Reddit's forum r/wallstreetbets have touted GameStop and other stocks like AMC Entertainment (AMC), BlackBerry (BB) and Bed Bath & Beyond (BBBY), which have each been the target of considerable short interest. In doing so, these users have helped stoke widespread purchases of these shares and catalyzed significant short squeezes, as those who bet against the stocks scrambled to cover their short positions. According to data from S3 Partners, short interest in GameStop totaled $3.04 billion as of Tuesday's close, with 10.86 million shares shorted for a 19% short percent of float (the percentage of a company’s stock that has been shorted by institutional traders). Short sellers in GameStop were down by $294 million last week.
For many investors, company fundamentals have taken a back seat to the mass appeal of these stocks when making investment decisions. GameStop posted its fourth loss in the past five quarters in the three months ended in April, and the company said it was continuing to suspend guidance.
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