Shares in GameStop (NYSE:GME) surged more than 5% on Monday, recovering some of the steep losses the meme stock incurred on Friday.
The stock had plunged 39% after the highly anticipated return of Keith Gill, also known as “Roaring Kitty”, to YouTube and the retailer’s surprise announcement of its earnings and plans to sell up to 75 million additional shares.
Further, GameStop’s first-quarter results, initially scheduled for release on Tuesday, revealed slower sales and a wider loss than analysts had anticipated, adding to the negative sentiment at the end of last week.
Analysts at Baird commented that GME’s disappointing results “underscore ongoing challenges to the company’s retail business model.”
“Moreover, we have limited confidence in the company’s ability to restore growth and drive further operating efficiency; however, we believe a smaller store footprint with a modernized consumer experience could eventually find an equilibrium point,” they wrote.
GME shares have been notably volatile since Gill’s return, who was one of the key drivers of the meme stock mania in 2021.