GameStop's stock soared by more than 15% ahead of its fourth-quarter results, marking its best day since November 29, with the earnings report scheduled for Tuesday. This rally came despite the company's stock being down 33.3% over the last year. However, the optimism was short-lived as GameStop reported earnings that missed both top and bottom line expectations, resulting in a sharp decline of approximately 16-17% in after-hours trading. The market had expected an implied move of about 20%, especially since GameStop had beaten earnings expectations in its last four reports. The company also announced job cuts and a decrease in quarterly revenue, attributing the downturn to rising competition and soft consumer spending. Additionally, an unspecified number of workers will be affected by layoffs in Texas and elsewhere, signaling challenges ahead for the retailer amid an 'unsustainable sales decline'. The stock's decline is on track to be its biggest in nine months, reflecting investor disappointment and concerns over GameStop's future performance.