Why GameStop Shares Tanked Wednesday
It's been two months since followers of Reddit's WallStreetBets forum turned GameStop (NYSE: GME) into a favorite trading vehicle for retail investors. Last night, the video game retailer reported its first quarterly earnings since volatility in the stock rocketed, and investors -- and traders -- are showing displeasure today. As of 9:55 a.m. EDT, GameStop shares had sunk 18% on the report and associated news.
While earnings and revenue for the company's fourth quarter ended Jan. 30 slightly missed analyst estimates, investors were more interested in what the company was going to say about its business transformation to using digital channels. The company didn't make any impressive waves on that topic. Maybe more important was something the company didn't say in its release, but did include in an SEC filing.
Source Fool.com
