Shares in meme-stock company GameStop Corp (NYSE:GME) fell sharply in New York overnight after the video game retailer announced a wider-than-expected loss for the second quarter and failed to provide any guidance on its future.
Net losses for the second quarter to end-July narrowed to US$61.6mln, or 85 cents per share, from US$111.3mln (1.71 cents) in the same period of 2020. On an adjusted basis, losses totalled US$55mln or 76 cents a share. Analysts were expecting a loss per share of 67 cents.
Sales grew to US$1.183bn in the second quarter from US$942mln the previous year, above market estimates of US$1.12bn.
The company ended the period with cash and restricted cash of US$1.78bn and with no significant long-term debt.
GameStop was the initial spark that ignited the meme-stock revolution at the start of this year, when an effort by wallstreetbets traders to squeeze short positions against the company sent the shares surging.
With the surge having warded off many of the short sellers previously pressuring the firm, the company is now engaged in a serious turnaround effort spearheaded by its chairman and major shareholder, activist investor Ryan Cohen.
GameStop’s meme-stock fans, especially on Reddit, had hoped for an update on the company’s turnaround strategy and future outlook, but there were no details forthcoming in the results statement or in the webcast with the new management.
According to a report by Forbes, the conference call lasted less than 10 minutes and new CEO Matt Furlong did not take any questions from analysts.
The shares dropped as much as 11% during trading yesterday, and were down 0.2% at US$198.80 in pre-market trade.