$GameStop (GME.US)$The stock price has experienced a consecutive second day of decline, following the previous sharp drop. Last Friday, despite the stock price soaring more than 30% in pre-market trading, it plummeted nearly 40% at the close of trading, as news of the company's quarterly sales decline was announced. On Monday, the decline continued, and the stock price fell further by over 12%, closing at $24.83.

During this period, Keith Gill, also known as "Roaring Kitty", a notable stock influencer, returned to YouTube, hoping to spark new interest in this struggling retailer. However, despite Gill's return drawing a lot of attention, the continued decline in the company's stock price suggests that his influence may not be translating into new investor enthusiasm for Gamestop.

According to the information shared by Gill on social media, he increased his holdings of Gamestop stock by 5 million shares at an average price of $21.274 per share and purchased 120,000 call options expiring on June 21 with a strike price of $20 for $5.6754 per contract. Although Reuters was unable to independently verify the number and value of the shares he holds, data from the London Stock Exchange shows that the trading price of these option contracts has risen to $6.40 per contract.

According to the financial report, this electronic game retailer's net sales in the first quarter were $881.8 million, a 29% decrease from $1.237 billion in the same period last year, which exceeded analysts' expectations. The company posted a loss of $32.3 million for the quarter, a reduction from $50.5 million in the same period last year, but a loss per share of $0.12 adjusted for the market still failed to meet market expectations.

Gamestop also applied to sell up to 75 million Class A shares on Friday for operating capital and general corporate purposes. Prior to this, the company had raised approximately $933.4 million by selling 45 million shares of stock.

Other so-called "Meme stocks", such as [Translation not provided], and the headphone vendor [Translation not provided], also fell nearly 7% and about 4% respectively on Monday.$AMC Entertainment (AMC.US)$With headphone retailers$Koss Corp (KOSS.US)$, both fell by nearly 7% and about 4% on Monday.

Although Gamestop's stock price nearly doubled within two days since May 14 when Keith Gill's account returned to X.com (formerly Twitter), it has since given back most of its gains. Nevertheless, the stock price of Gamestop has still risen by about 37% since 2024.

For years, Gamestop has been trying to cope with losses, mainly due to the trend of consumers turning to online shopping. The latest quarterly results show that sales in all business sectors, including hardware and accessories, software, and collectibles, have declined, reflecting that the company is facing bigger challenges than expected in a fiercely competitive and constantly changing industry, making it difficult to maintain market share and revenue growth.

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