GameStop earnings overshadowed by SEC meme stock investigation

GameStop reported better than expected earnings this week — but its numbers were overshadowed by a disclosure that the Securities and Exchange Commission was investigating its trading practices.

The company reported on Wednesday a 25 percent increase in sales in their first fiscal quarter and revenue of $1.28 billion — up from $1.02 billion a year ago. In its earnings filing, the company revealed: “On May 26, 2021, we received a request from the Staff of the SEC for the voluntary production of documents and information concerning a SEC investigation into the trading activity in our securities and the securities of other companies.”