GameStop discloses SEC subpoena over business activity, posts larger than expected loss


People walk past a GameStop in Manhattan, New York, United States on December 7, 2021. REUTERS / Andrew Kelly

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December 8 (Reuters) – Video game retailer GameStop Corp (GME.N) said it received a subpoena from the U.S. securities regulator in August for documents on an investigation into its activities share trading, while reporting a larger-than-expected quarterly report. loss.

GameStop was one of the companies whose stocks took center stage in this year’s meme stock frenzy, which was run by day traders and fueled by discussions on social media platforms such as Reddit.

“We are in the process of producing the documents and have been and intend to continue to cooperate fully with SEC staff regarding this matter,” GameStop said in a regulatory filing Wednesday, adding that the investigation is not expected. have a negative impact on the business.

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GameStop shares are down 4.4% to $ 166 in extended trading, having gained more than nine times so far this year.

On an adjusted basis, the company lost $ 1.39 per share in the third quarter ended Oct. 30, against estimates of a loss of $ 0.52 per share, according to data from Refinitiv IBES.

GameStop’s business model, which was suffering even before the pandemic hit, has been further impacted by COVID-19 lockdowns, as the company has closed hundreds of physical stores.

The company has since tried to capitalize on pandemic-fueled online shopping demand by trying to sell its consoles and games online.

GameStop’s overall revenue reached $ 1.30 billion, beating estimates of $ 1.19 billion.

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Report by Akash Sriram in Bangalore; Editing by Shounak Dasgupta

Our standards: Thomson Reuters Trust Principles.


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