What to expect from Game Stop

Game Stop is scheduled to report earnings after the market closes on Tuesday. The stock hit a record high of $120.75/share in 2021 and is currently trading at around $23. The stock is susceptible to large price swings after earnings releases and can easily jump higher on strong numbers. Conversely, the stock can easily jump lower on disappointing numbers. To prepare you, here are Wall Street’s expectations:

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The company is expected to report a loss of ($0.01) per share on revenue of $900 million. The so-called whisper number is ($0.01) per share. The whisper number is Wall Street’s unofficial assessment of earnings.

A closer look at the basics

The company’s earnings have fluctuated over the past few years. In 2020, the company earned $0.06/share. In 2021, the company lost -0.75. Then in 2022, the company lost -$1.14. In 2023, the company earned -$1.02. This year, earnings are expected to rise to $0.06 and then fall to -$0.10 in 2025 and again to -$0.07/share in 2026. Growth investors want the company to find a path to wealth.

A closer look at the technical data

Technically, the stock has been trading at all sorts of prices. Years ago, it was the poster child of the short squeeze movement on Reddit. Recently, it had another big spike before falling after the Reddit guy came back and disclosed a large position. The stock is now 64% below its 52-week high and short interest remains relatively high at 23%. Bulls want to see the stock up after the earnings release and bears want to see it down.

Company profile

GameStop Corp., a specialty retailer, offers games and entertainment products through its stores and e-commerce platforms in the United States, Canada, Australia and Europe.

The company sells new and used gaming platforms, accessories such as controllers, gaming headsets and virtual reality products, new and used gaming software, as well as digital in-game currency, digital downloadable content and full game downloads. It sells collectibles such as clothing, toys, trading cards, gadgets and other retail products for pop culture and technology enthusiasts and is also active in the digital asset wallet and NFT space.
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Marketplace activities.

The company operates stores and e-commerce sites under the GameStop, EB Games and Micromania brands, as well as pop culture-themed stores that sell collectibles, clothing, gadgets, electronics, toys and other retail products under the Zing Pop Culture brand. It also offers Game Informer magazine, a print and digital gaming publication.

The company was formerly known as GSC Holdings Corp. GameStop Corp. was founded in 1996 and is headquartered in Grapevine, Texas.

Watch how the stock reacts to the news

From my standpoint, the most important thing I pay attention to during earnings season is how the market and a particular company reacts to the news. Remember to always cut your losses and never argue with the tape.

Disclosure: In the past, the stock was featured on FindLeadingStocks.com.

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