Shares of GameStop tanked in premarket trading Friday, a day after its earnings statement exceeded expectations.
The stock was down 8 percent shortly before the opening bell.
On Thursday, the company reported 3.8 percent net growth in the first quarter on the back of Nintendo Switch hardware sales and said established store sales increased 2.3 percent, despite Wall Street expectations that GameStop would post a decrease in sales.
So why the selloff?
For one, GameStop’s net income decreased from $65.8 million in the year-ago quarter to $59 million.
