GameStop Corp shares fell more than 12% in after hours trading Tuesday after the video game retailer surprised investors with a quarterly profit but sales dropped more than 30% GameStop reported a significant drop in Revenue with figures falling to $798 3 million for the quarter ending August 3rd compared to 1.16 billion doll the previous year this decline is attributed to the ongoing consumer shift towards online buying in response GameStop has filed for an offering of up to 20 million shares the company plans to use the proceeds for General Corporate purposes including potential Acquisitions and Investments aligning with its investment policy GameStop is also identifying stores for closure expecting to shut down more Outlets than in recent years CEO Ryan Cohen has highlighted intense competition in the gaming console Market while analysts note the company lack of strategy for New Growth categories despite Revenue challenges GameStop reported a net income of 14.8 million or 4 cents per share compared to a loss of $2.8 million or 1 cent per share a year earlier this Improvement was aided by a 16% reduction in selling and administrative expenses GameStop stock fell over 12% in extended trading following the share offering announcement the stock is experienced volatility influenced by online stock influencer roaring Kitty a key figure in the 2021 meme stock rally who recently returned to x.com GameStop is up over 40% year-to date while UPN the return of roaring Kitty GameStop stock surged in a short period of time up to 340% wedbush analyst Michael poter advises caution highlighting the company's lack of investor engagement management continues to shun investor interaction said poor noting the absence of earnings calls and guidance since 2019 poor points out several hurdles for GameStop's growth the shift from physical to digital game sales declining game sales due to microtransactions and the rise of subscription Services pose significant challenges thanks for watching don't forget to like And subscribe market news short and sweet [Music]