GameStop shares fall over 14% as video game retailer faces competition, weak spending

GameStop is set to lose more than $700 million in its if the losses hold.

As of Tuesday, GameStop's stock had fallen nearly 12% this year, as the retail and environment remains intensely competitive for the company, which was once a mainstay of American malls.

The company has a total of 4,169 stores as of Feb. 3, compared with 4,413 in January last year.

GameStop was hailed as the pioneer of Wall Street's so-called meme stocks. The stock's price rose as much as 100 times over several months in 2021, largely on the sentiment of individual buyers connected through the Reddit community forum WallStreetBets.

"No sooner has the meme stock craze been resurrected by 's media company enjoying a big share price boost, it's somewhat ironic that the grandfather of meme has fallen flat on its face," AJ Bell investment director Russ Mould said.

Shares of Trump Media & Technology Group rose more than 12% on Wednesday, a day after its stellar Nasdaq debut.

Mould added that the lack of detailed commentary about trading and the company's decision not to hold a post-earnings conference call means "the management is hiding under a rock."

GameStop's first adjusted per share profit in four quarters also failed to lift investors' spirits. The company's earnings were 22 cents per share on an adjusted basis for the fourth ended Feb. 3, after breaking-even in the third quarter.