Corsair Gaming (CRSR) - Get Free Report shares fell Tuesday after the videogame-equipment company, which is popular among the so-called meme stocks, reported weaker-than-expected second-quarter earnings.
Earnings per share at the Fremont, Calif., company registered 28 cents, lagging the Bloomberg analyst consensus of 29 cents.
Adjusted earnings before interest, taxes, depreciation and amortization totaled $51.6 million, trailing the analyst consensus of $57.1 million.
To be sure, revenue came in at $472.9 million, topping the analyst consensus of $467.1 million.
Corsair affirmed that full-year adjusted Ebitda should come in at $245 million to $265 million. And it still sees full-year revenue at $1.9 billion to $2.1 billion.
The shares recently traded at $26.93, down 7.1%. They'd dropped 24% in the six months through Monday.
On June 14 Corsair shares had surged. Data from the Yolosocks.live website, which tracks real-time mentions on stocks within Reddit's r/wallstreetbets chatroom, indicated that over the prior 24 hours, they had been the second-most-discussed stock among users, up from a previous rank of 11. The stock had been mentioned 860 times.
TheStreet's founder, Jim Cramer, that day cautioned that such a steep rise for a fundamentally sound stock like Corsair would likely entice large-scale sellers at these levels. And indeed Corsair has fallen 24% since then.
"They have the high-performance equipment you need to dominate in e-sports, and I think e-sports are here to stay."