GameStop stock price whipsaws after first earnings report since Reddit rally
GameStop shares responded to big misses on both the top and bottom lines in its latest earnings report just as one should expect — jumping 8.4% following the report's release after market close and then cratering by 21.8%.
By the numbers: The company reported revenue of $2.12 billion for the fourth quarter versus $2.21 billion expected, and adjusted earnings of $1.34 per share versus estimates of $1.43.
- Global e-commerce sales increased 175% to represent 34% of net sales, up from 12% in the fiscal fourth quarter of 2019.
Of note: GameStop is still suspending guidance.
State of play: In a separate announcement the company said former Amazon director and general manager Jenna Owens will be its next chief operating officer.
- GameStop also said chief customer officer Frank Hamlin will be stepping down, another major C-suite departure since Chewy co-founder Ryan Cohen joined the board of directors in January.
Between the lines: The Bankrate survey found that those who identified as Reddit users were more than twice as likely to be investing more compared to before the coronavirus pandemic than investing less (23% vs. 10%, respectively).