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GameStop Investors Were Waiting for Good News — They Still Are
- Company has yet to reveal details of its turnaround strategy
- Retailer’s second-quarter loss tops estimates as sales climb
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GameStop Corp.’s legions of meme-stock fans were primed to hear a new CEO confidently point the path forward. Instead, the struggling video-game retailer posted a wider-than-expected second-quarter loss, took no questions on a call with analysts and lost 11% of its market value in late trading.
After a more than 10-fold runup in the stock this year, the Reddit crowd’s belief in GameStop’s potential is running into the reality that a turnaround will take time and patience. Sales are improving and the company’s debt is almost gone. But GameStop has reported red ink in six of the past eight quarters, including a loss of 76 cents a share in the latest period, wider than the 67-cent average estimate of analysts.