Why GameStop Shares Are Plummeting Premarket

Shares of video game and consumer electronics retailer GameStop Corp. GME plunged in premarket trading on Thursday following the release of its first-quarter results.

Texas-based GameStop reported a decline in its first-quarter revenue to $1.237 billion despite the net loss per share narrowing from a year ago. Both the metrics missed the Street estimates.

Incidentally, the company reversed to a profit in the fourth quarter amid its cost control measures and renewed thrust on its brick-and-mortar operations.

In a separate release, the company said Ryan Cohen is taking over as executive chairman, overseeing capital allocation and management, effective immediately. The company said Matthew Furlong, who had been CEO for two years, has been fired.

Cohen took a stake in GameStop in 2020 and his RC Ventures now has an 11.9% stake in the retailer.

In premarket trading on Thursday, GameStop shares fell 17.08% to $21.65, according to Benzinga Pro data.

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