GameStop Corp (NYSE:GME) shares were trading higher in the premarket in a volatile Monday session, indicating a possible rebound.

Last Friday, the stock closed lower by 39% after the company reported fiscal first-quarter earnings ahead of its schedule and Roaring Kitty held a live stream.

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.

The video game retailer reported 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 an Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) YouTube livestream, the Financial Times reports.

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.

Investors can gain exposure to the GameStop stock via iShares Core S&P Mid-Cap ETF (NYSE:IJH) and SPDR MidCap Trust Series I (NYSE:MDY).

Price Action: GME shares traded lower by 3.05% at $27.36 at the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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