What happened
The glow seems to be fading on shares of original meme stock GameStop (GME 3.77%). The stock has dropped almost 33% in the past month -- a period that included its latest quarterly financial update and some news that should have pleased GameStop's retail investors. But the downtrend in GameStop shares continued today, with the stock down nearly 4% at the day's lows. As of 3:14 p.m. ET, the shares remained down 2.6%.
So what
Earlier this month GameStop disappointed investors when it reported its fiscal third-quarter financial results with no major update on its transition to an e-commerce business. Last week, digital payments network company Flexa announced on Twitter that GameStop will use its network to accept cryptocurrency payments including Shiba Inu and Dogecoin. But that news hasn't been enough for the retail investor crowd to drive shares of GameStop higher.
Image source: Getty Images.
Now what
When retail investors turned GameStop into the first meme stock earlier this year, they expected the troubled brick-and-mortar retailer to turn into an online giant. GameStop brought in Chewy co-founder Ryan Cohen, and investors drove institutions to push shares up by covering their short positions.
But in the most recent quarterly update, though GameStop announced revenue jumped by 29% year over year to nearly $1.3 billion in its fiscal third quarter, ended Oct. 30, its net loss widened to $105.4 million from $18.8 million in the year-ago period.
Even last week's news that the video game retailer will be accepting cryptocurrency payments through Flexa hasn't helped shares stem the month-long decline. Today's drop didn't come from any more recent news, but it seems retail investors may be losing patience with the company, and aren't holding the stock up with new share buying any longer.
