$GameStop (GME.US)$ sank more than 10% Monday as the videogame chain's meme-stock-friendly shares dropped for a second session following GME-backer "Roaring Kitty"'s widely viewed live video about the company.
GME fell 12% to a $24.82 close, adding to a 39% seen last Friday after Keith Gill -- known by his social-media name "Roaring Kitty" -- held a live stream about the stock.
The company also reported poorly received fiscal Q1 earnings Friday morning ahead of schedule and announced plans to sell 75 million additional shares.
While many were looking for an updated thesis on why Gill is investing heavily in GameStop once again, several investors were left with more questions after the stream. The livestream ended up being disappointing for investors and the stock.
Meanwhile, the videogame retailer reported Friday before the bell that it had net sales of $881.8 million, down from $1.237 billion last year, lagging the analyst consensus estimate of $995.3 million.
GameStop reported an EPS loss of $(0.12), missing the analyst consensus estimate loss of $(0.09).
The quarterly net loss improved to $(32.3) million, down from $(50.5) million last year. GameStop also disclosed an at-the-market offering program, which permitted the sale of up to 75 million shares.
This added to the 45 million shares sold last month, which raised $933 million.
Last week, Keith Gill, also known as Roaring Kitty, expressed his backing for CEO Ryan Cohen during a YouTube live stream.
The retailer's core business has been declining, with store numbers shrinking by over a quarter in five years, but investment gains have mitigated some losses.
Gill confirmed his significant investment in GameStop and denied working with any third-party funder.