Shares in brick-and-mortar video game retailer and legacy 澳洲幸运5官方开奖结果体彩网:meme stock GameStop Corp. (GME) plunged in premarket trading Wednesday after the company disclosed quarterly earnings that fell considerably short of Wall Street’s expectations amid an ongoing shift to digital downloads and softening 澳洲幸运5官方开奖结果体彩网:consumer spending.

In the three-month period ending Feb. 3, the Grapevine, Texas-based company posted 澳洲幸运5官方开奖结果体彩网:adjusted earnings of 22 cents per share, compared to analysts’ estimates of 30 cents a share. Revenue of $1.79 billion in the period fell from $2.23 billion a year earlier and missed the $2.05 billion consensus view. Breaking down the video game seller’s top line, hardware and accessories sales were $1.09 billion, representing a 12% 澳洲幸运5官方开奖结果体彩网:year-over-year (YOY) decline, while software sales slumped 31% to $465 million.

"An increasing mix of digital downloads is hurting physical retail, and there is simply no reason to go to the store if a consumer can just order a game and download it immediately," said Wedbush analyst Michael Pachter, according to Reuters. "Revenues are highly unlikely to rebound unless management figures out a way to drive store traffic," he added.

Gamestop also slashed jobs over the last year amid increasing online competition and softening consumer spending. At the start of February, the company had approximately 8,000 full-time salaried and hourly associates and between 13,000 and 18,000 part-time hourly associates globally, according to its annual 10-K report filed Tuesday evening.

This compares with around 11,000 full-time salaried and hourly employees and between 14,000 and 27,000 part-time hourly staff in 2023, per Reuters. In addition, the company has ceased operations in Ireland, Switzerland, and Austria as part of its goal to achieve sustained profitability.

The GameStop share price has remained entrenched within a multi-year 澳洲幸运5官方开奖结果体彩网:downtrend, pressured by a long-term trendline connecting several prominent 澳洲幸运5官方开奖结果体彩网:countertrend swing highs. Amid the earnings-driven sell-off, investors should monitor how the stock’s price responds to the 2023 low at $11.83. A reversal at this level could mark the beginning of a potential 澳洲幸运5官方开奖结果体彩网:double bottom pattern, while a failure to hold this important chart🦩 level could act as catalyst for further falls in the share price.

Gamestop shares were down 18.2% at $12.68 in premarket trading at around 7:00 a.m. ET Wednesday. Through Tuesday's close, the stock had lost about a third of its value over the past 12 months.

UPDATE—March 27, 2024: This article has been updated with the latest stock price information.

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