GameStop set to gap down on open today following earnings miss.
GameStop (GME.us) shares are set to gap lower on today's gap cash open, after the videogame retailer reported worse-than-expected revenue for its fourth quarter ended January. Adjusted EPS came in at 22 cents, with analysts forecasting 30 cents per share. Sales were also below the consensus of $2.05 billion at $1.79 billion. Hardware and accessories sales fell to $1.09 billion, down from $1.24 billion, and software sales declined 31% to $465 million from $670 million.
There are questions around the company's business model with consumers moving towards digital game download purchases over physical consol purchases.
In its 10-K SEC filing, GameStop enabled a committee, including CEO Ryan Cohen and two independent board members, to manage the company's investments. This decision, greenlit in December, permits GameStop to invest in various assets, including stocks.
As of close yesterday, GME.us was down around 10% for the year to date. However, this is set to worsen tyoday following its earnings release. Company shares traded 17% down to $12.86 in after-hours trading.
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
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