GameStop stock erases all premarket gains after a big Q1 sales miss, share sale

GameStop (NYSE: NYSE:GME) reported a much larger-than-expected revenue miss for the fiscal Q1 2024.

Moreover, the company filed to sell up to 75 million shares, causing its stock to drop 10% in premarket Friday trading.

GME stock was previously up as much as 37% after retail investor Keith Gill, known online as "Roaring Kitty," announced his return to YouTube after 3 years. 

The announcement had fueled a 47% surge in the stock on Thursday.

The video game retailer reported a first-quarter loss per share of $0.11, missing the $0.09 loss per share expected by analysts. Revenue was reported at $882 million, significantly below the consensus estimates of $995 million.

GameStop posted a net loss of $32.3 million for Q1, compared to a net loss of $50.5 million in the same period last year.

Better known as Roaring Kitty, Gill is best known for his GameStop stock analyses on the subreddit r/wallstreetbets. Posting under DeepF******Value (DFV) on Reddit (NYSE:RDDT), his insights were pivotal in the January 2021 GameStop short squeeze and the ensuing meme stock trading frenzy.

The company said it intends to use proceeds from the planned share sale for general corporate purposes.