(Boursier.com) — GameStop plunged 17% in pre-session in New York, sanctioned after the announcement of disappointing preliminary results. The company said its first-quarter net revenue is expected to be between $872 million and $892 million, compared to $1.237 billion a year ago and a consensus of $1.05 billion. The net loss for the quarter ended May 4 is expected to be between $27 million and $37 million, less than the $50.5 million a year ago as GameStop benefits from its cost-cutting measures. As customers shift to purchasing video games and NFTs online, the retailer still relies heavily on physical stores.
Additionally, in a new regulatory filing, the company said it will sell up to 45 million shares of Class A common stock in an at-the-market offering.
After a euphoric start to the week with the return to the forefront of ‘meme stocks’, GameStop is preparing to suffer a third consecutive sharp decline this Friday.
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