GameStop Revenue Down 37% in 5 Years

By Douglas A. McIntyre Updated May 20, 6:33AM EDT · Published May 19, 5:53AM EDT

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GameStop Revenue Down 37% in 5 Years — © Dennis Diatel Photography / iStock Editorial via Getty Images

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Many investors lose most or all of their investments when stocks run up on speculation and rumor.
GameStop’s stock has had another crazy run, but the end may be in sight.

When it comes down to it, most companies are measured on financial performance. Even if their stock trades wildly higher or lower, there must be a benchmark. This is true of GameStop Corp. (NYSE: GME | GME Price Prediction). Its revenue has decreased 37% in five years to $5.3 billion, and the company lost money in all but one of those years, which was in 2019. Some people think GameStop shares are junk.

Five years ago, GameStop’s stock traded for just over $1. During crazy speculation in 2021, it hit $81 for a few minutes. Through much of that year, it traded above $40. Recently, it had another run, from $10 to over $20. It fell to earth when management estimated first-quarter revenue of about $875 million, down from the same quarter last year when it was $1.24 billion. To make matters worse for investors, according to The Wall Street Journal, “In a separate filing connected to the shelf registration, GameStop said it has entered into an open market sales agreement with Jefferies, which is acting as a sale agent as it looks to sell up to 45 million new shares of common stock at prevailing market rates.”

GameStop faces two challenges it cannot meet. The first is that people increasingly download games over the internet, and the second is that giant retailers like Walmart compete with it. As its recent quarterly numbers show, Walmart Inc. (NYSE: WMT) remains a massive success—and, incidentally, so is Amazon.com Inc. (NASDAQ: AMZN). GameStop is too small.

Many investors lose most or all of their investments when stocks run up on speculation and rumors. They are drawn to trading because they hear about the people who did well, and it is an excellent way to get burned.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.