GameStop Shares Slide As Revenue Miss Overshadows Earnings Beat

GameStop Corp (NYSE:GME) shares are trading lower this week, down roughly 7% over the past five sessions to sit near $21.50, as investors react to a mixed third-quarter financial report released Tuesday.

• GameStop stock is trending lower. What’s pulling GME shares down?

What To Know: The retailer posted revenue of $821 million, missing Wall Street estimates of $987.28 million and marking a 4.5% year-over-year decline. While GameStop managed an adjusted earnings beat of 24 cents per share, surpassing projections of 20 cents, declining sales in its core hardware and software segments fueled bearish sentiment.

However, collectibles revenue offered a silver lining, jumping to $256.1 million, and the company swung to an operating income of $41.3 million compared to a loss of $33.4 million in the prior year.

Despite a strong balance sheet featuring $8.8 billion in cash and approximately $519 million in Bitcoin holdings, the stock's technical outlook remains weak, trading below its 50-day and 200-day moving averages. The slump has also impacted high-profile investors.

What Else: Selling, general and administrative expenses were slashed to $221.4 million from $282.0 million in the prior year quarter, a reduction that more than offset the revenue decline.

Additionally, the sales data uncovers a stark geographic divide. While the U.S. segment actually grew, posting net sales of $617.0 million compared to $551.7 million last year, this momentum was erased by sharp contractions in international markets.

This suggests the company's turnaround strategy is stabilizing its domestic core even as its global footprint shrinks.

Benzinga Edge Rankings: Benzinga Edge rankings further underscore this mixed financial picture, assigning the stock a high Growth score of 98.16 despite weak Momentum of 20.81 and negative price trends across all timeframes.

GME Price Action: GameStop shares were down 2.02% at $21.41 at the time of publication on Friday, according to Benzinga Pro data.

The 52-week range for GameStop has been between $19.93 and $35.81, highlighting the stock’s capacity for significant price swings.

The recent price action suggests that the lower end of this range may serve as a critical support level, while the upper end remains a formidable resistance point that could deter upward movement in the near term.

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