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GameStop’s become the center of a social media-fueled drama.
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GameStop’s stock has risen 948% so far this year, to $180.94, and it has little to do with selling video games. It turns out, actually, that the retailer at the center of a social media-fueled Wall Street battle over GameStop’s share value hasn’t caused the same enthusiasm for the company’s brick-and-mortar business.
In GameStop’s first report since the dramatic swings in its share value, the company said Tuesday it tallied $2.12 billion in sales during the shopping season ending January 30, a slight dip from the $2.19 billion it reported a year prior. That amounted to $1.19 per share in profits, up significantly from the 32 cents reported a year ago, but still far below the $1.35 per share Wall Street analysts surveyed by Yahoo Finance had expected. Analysts had also expected the company to report sales of $2.2 billion.
That mediocre showing had little impact on GameStop’s shares, which rose 5% in after hours trading to $191.01. But the game retailer’s financials have had little to do with its stock lately. GameStop shares 2,700% in the span of mere weeks as it became the battleground of social media-fueled investors, who chose to bet against Wall Street traders who’d wagered GameStop would fail. As a result, the stock went from $17.25 per share at the beginning of the year and rising up to $483 at one point, with wild swings halving and doubling its value in the span of a few days.
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