Why GameStop Shares Tanked Thursday
Original meme stock GameStop (NYSE: GME) has maintained a lofty valuation multiple all year, but some investors may be getting impatient with the company's progress. After reporting its fiscal third-quarter financial results Wednesday night, GameStop shares dropped as much as 7.4% in early trading Thursday. As of 12:28 p.m. ET, shares remained down by more than 6%.
GameStop shareholders have been patiently waiting for the company to transition to a business model more focused on e-commerce -- management's stated goal. The stock soared in early 2021 as retail investors piled into it in a bid to use the high level of short interest in the company to set up a short squeeze that would deliver huge returns. That seemed to work -- the stock rocketed upward by more than 1,500% at its peak. While shares are still up more than 760% year-to-date, the company's Q3 financial report didn't impress investors as losses widened significantly year over year
Source Fool.com
