GameStop Stock Plunges Over 20% On Poor Earnings

2 min read | March 24, 2021 12:49 PM EDT | By Anuj

GameStop Stock Plunges Over 20% On Poor Earnings

GameStop Corporation (GME:US or NYSE: GME)

The gaming stock has zoomed nearly 865 per cent year-to-date (YTD) and all credit goes to the Reddit-fueled rally, which propelled its share price to a 52-week high of US$ 483 per common share on January 28, 2020. Since then, it has plummeted over 62 per cent.

The stock may further drop because of its lower net sales for the ninth straight quarter. Wall Street analysts have already downgraded its target prices.

In the past one year, its share price has swelled approximately 4,269 per cent, with a 50-day trade volume of 51.26 million shares. Now, it is a large-cap stock with a market capitalization of C$ 12.676 billion.

GameStop's One-Year Stock Performance Chart. (Source: EODHD/Others)

The company reported total available cash and cash equivalent of US$ 635 million at the end of fiscal 2020, up compared with US$ 513.5 million at the end of fiscal 2019. The company also disclosed its long-term debt and short-term debt of US$ 216 million and US$ 146.7 million, respectively.

GameStop’s Outlook For 2021

During the current year, the video game retailer has been focusing on business transformation. GameStop has not published its guidance for this year due to the COVID-19 impact. However, the company expects to grow its e-commerce operations under the leadership of Ryan Cohen in 2021.

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