GameStop Shares Plunge Following Revenue Miss and Share Offering Announcement

Despite turning a surprise profit, GameStop's stock drops as quarterly sales decline and plans for 20 million share offering raise investor concerns.

GameStop reported Q2 revenue of $798 million, missing analysts' estimates of $895.7 million and marking a 31% year-over-year decline.
The company posted a net income of $14.8 million, or 4 cents per share, surpassing expectations of a loss.
GameStop announced a plan to offer 20 million shares to fund acquisitions and general corporate purposes, contributing to a significant drop in stock price.
Sales fell across all segments: hardware and accessories down 24.5%, software down 47.8%, and collectibles down 17.7%.
GameStop plans to close more stores as part of its ongoing restructuring efforts, aiming to streamline operations amid shifting consumer preferences towards digital downloads and online shopping.