What To Expect From GameStop On Wednesday

GameStop Corp
GME
scheduled to report earnings after Wednesday’s close. The stock hit a record high of $483/share in 2021 and is currently trading near $289/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:

Earnings Preview:

The company is expected to report a loss of ($0.67)/share on $1.16 billion in revenue. Meanwhile, the so-called Whisper number is a loss of ($0.64)/share. The Whisper number is the Street’s unofficial view on earnings.

A Closer Look At The Fundamentals:

The company was losing money for several quarters after Covid-19 shut everything down and hurt sales for many retailers. However, it is encouraging to see the company turn profitable and earn $1.35 in the quarter ending January 2021. That was 6% higher than the same quarter in the prior year.

A Closer Look At The Technicals:

Technically, the stock is acting very well in the wake of the huge move it enjoyed earlier this year in the 2021 meme stock frenzy. The stock is very extended in the short-term and due to pullback to digest the recent and robust rally.

Pay Attention To How The Stock Reacts To The News:

From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.