GameStop (GME) Stock Drops 11% Following Poor Q1 Financial Results
GameStop Corp (NYSE: GME) is experiencing significant selling pressure, with stock prices dropping 5.27% during trading on June 11 and an additional 11% in after-market hours, reaching $25.34. The decline follows disappointing Q1 financial results.
Key Financial Results
- Q1 revenues of $732.4 million, below analyst expectations of $754.2 million.
- 17% decrease from $881.8 million in the same quarter last year.
- Net income of $44.8 million, up from a net loss of $32.3 million in Q1 2024.
- Narrowed operating losses to $10.8 million compared to $50.6 million in Q1 2024.
Despite these improvements, GME stock reacted negatively, even as the company plans to raise an additional $1.75 billion for Bitcoin purchases.
Bitcoin Acquisition Plans
- GameStop previously added 4,170 Bitcoins to its treasury following a $1.5 billion fundraise.
- The current offering involves convertible notes targeted at qualified institutional buyers.
- Notes carry no regular interest and will mature in mid-2032.
- Proceeds will be used for general corporate purposes and potential acquisitions.