GameStop shares fell over 3.5% in after-hours trading following a disappointing revenue report for Q1. The video game retailer's revenue was reported at $732.4 million, missing analyst estimates of $754.2 million and reflecting a 17% decline from $881.8 million in the same period last year, attributed to challenges in physical game sales. However, the company reported a net income of $44.8 million, a significant improvement from a net loss of $32.3 million a year earlier. Operating losses also improved to $10.8 million from $50.6 million in Q1 2024. Despite the drop in revenue, GameStop holds $6.4 billion in cash and equivalents, up from $1 billion a year ago, providing it room to make Bitcoin purchases. The company recently entered the Bitcoin market by purchasing 4,710 BTC, funded through debt financing. This strategic move marks GameStop's initiative to enhance its asset reserves while navigating difficulties in the gaming sector.

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