Gamers look away!
GameStop has announced it will close even more stores in the coming year, as the company faces disappointing performance. Earnings Report,
The company said it was having difficulty selling hardware in its stores worldwide, as more and more games were downloaded digitally rather than ordered online.
The next round of closure is scheduled even more severe This is more than the contraction the company experienced last year.
The once-lauded retailer closed 287 stores worldwide in the 12-month period that ended last March.
This round of closures brings the total number of stores to just 4,000 — a number that's set to shrink even further. The company hasn't said how many locations it plans to close, but the number is expected to be quite high.
In an earnings report released on Wednesday, it said GME Stock Dropped , 15% loss in one dayThe company has declined by 7% in the last one month itself.
The latest report comes a far cry from the height of the meme-stock mania, which saw GME’s share price skyrocket on the back of motivated retail investors.
GameStop stock became a moral battle for retail investors fighting against the overwhelming power of institutional investors.
In 2021, GME stock surged as low-level day traders put pressure on institutional investors who were stuck with their shorts.
This started the era of meme-stocks and meme-coins – which are financial investments made not based on the strength of an asset, but as part of a group of interested amateur investors.
Earlier this year, one of GME's champions, internet icon Roaring Kitty, returned to X and attempted to revive the stock war.
When this news broke, the shares jumped by 119%. The roaring cat was back and “hodling” – in Internet parlance this means “holding on for your life.”
However, that Stock Sugar Rush The setback was short-lived and the company's stock fell sharply to baseline.
Now, as GameStop continues its downward slide, it seems those golden days are long gone.
In the last quarter — which ended Aug. 3 — revenue was $798.3 million, compared to $1.16 billion in the same quarter last year.
GameStop's stock price is up 18.5% since the beginning of the year, although some analysts such as Jim Cramer believe that there will be a near-term decline. A $20 stock price is way overblown,
Executives say they hope closing underperforming stores will make the overall business more efficient.
