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GameStop (GME) will release its fourth quarter results, its first earnings report since the massive compression of Reddit fueled by Reddit after the market closed on Tuesday. GME stock fell following another high-level executive departure.
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GameStop wins
Estimates: Analysts see earnings soar 15% to $ 1.46 per share as revenues rise 2.2% to $ 2.24 billion, according to Zacks Investment Research. Comparable store sales are expected to increase 8.1%, according to Consensus Metrix.
Results: Come back after the closing.
On Tuesday, GameStop announced that Frank Hamlin, its customer service manager, will step down on March 31. GameStop CFO Jim Bell announced last month that he was leaving the company on March 26.
Both departures come as an activist investor and Chewy.com (CHWY) co-founder Ryan Cohen is pushing for GameStop to revamp its business model and add more online offerings.
Store: The shares fell 5.3% to 184.21 on the stock exchange today. GME stock climbed to 483 at the end of January, but fell in February before rebounding slightly and falling again this month. GameStop stock remains above its 50- and 200-day lines as well as year-ago levels, according to MarketSmith’s chart analysis.
Among the other actions of the Reddit rally, AMC Networks (AMC) fell 10%, and Discovery (DISCA) fell 5.6%.
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GME Stock Short Squeeze Frenzy
GameStop found itself in the midst of a reduced pressure mania sparked by Reddit group r / wallstreetbets, which was looking to take on hedge funds that were betting the stock would drop.
A House financial services committee asked officials in February about the relationship between the Robinhood trading app and Wall Street, after the app imposed restrictions on GME stock and other short-term stocks from Reddit.
The short-squeeze might run out of juice. A report by S&P Global Market Intelligence showed short selling overall fell in late February, with short sales of GameStop stock falling by more than 80%. The investment strategy of the Reddit r / wallstreetbets group requires heavily sold stocks for quick gains.
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