GameStop (GME) shares took another hit this week, falling more than 5% on Wednesday and touching their lowest level since late November. The drop adds to a painful slide for the popular meme stock, which is now down over 37% from this year’s peak — shrinking the company’s market value from roughly $15 billion to around $10 billion.
The latest sell-off comes as GameStop faces a tough combination of slowing revenue and fresh turbulence in the Bitcoin treasury space — a “double whammy” that’s raising new questions about the company’s turnaround strategy.
Earnings Reveal Soft Revenue and Slowing Momentum
GameStop’s latest quarterly report didn’t do much to inspire confidence. Revenue came in at $821 million, slipping from $860 million a year earlier. The decline reflects a major shift underway in the gaming world: more players are moving to digital downloads, streaming, and subscription-based services. That trend continues to eat away at GameStop’s traditional retail model.
The company has been trying to evolve by leaning into digital sales and collectibles, but progress has been slower than executives hoped. Competition is also fierce, with giants like Amazon and eBay taking bigger slices of the market.
Bitcoin Strategy Under Pressure
GameStop’s crypto experiment hasn’t paid off yet either. The retailer has been accumulating Bitcoin, but the value of its holdings slid to $534 million by the end of the quarter — and has since dropped further to about $434 million.
It’s a tough time for Bitcoin treasury-focused companies across the board. Strategy, MetaPlanet, and others have seen demand fall sharply in recent months, adding more pressure to GameStop’s ambitious bet on digital assets.
Some Bright Spots: Profit Up, Costs Down
Despite the weak top line, GameStop did manage to strengthen its bottom line. Net income jumped to $77 million, a big improvement from $17.4 million the year before.
This boost came largely from aggressive cost-cutting. Selling, general, and administrative expenses fell to $221 million from $282 million.
GameStop also continues to maintain one of the strongest balance sheets in the retail sector. Cash and equivalents rose to $8.8 billion, current assets climbed to $9.6 billion, and current liabilities dropped to $932 million — numbers that give the company significant financial breathing room.
Technical Charts Flash a Warning
On the technical side, the weekly chart shows a clear bearish setup. GME has formed a head-and-shoulders pattern — a well-known indicator of potential downside. The “head” sits near $35.80, with a right shoulder around $29.
The stock is now trading near its neckline at about $20.55, while remaining below major indicators like moving averages and the Ichimoku cloud.
If bearish momentum continues, traders warn that GME could drift toward the key psychological level of $20.
As GameStop navigates slowing sales, a tough retail landscape, and shaky Bitcoin bets, investors appear increasingly cautious — and the stock reflects it.
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