GameStop (NYSE: GME) shares rose over 13% on Tuesday as investors brace themselves for the upcoming earnings report from the gaming retailer scheduled for Wednesday, December 6.
Analysts are closely eyeing GameStop’s financial performance, with expectations set at a revenue of $1.1 billion and an EPS loss of $0.08. GameStop (NYSE: GME) reported a moderate profit in its January earnings release, followed by consecutive losses in the subsequent two quarters.
The upcoming earnings release holds added significance as it marks the first under the leadership of the newly appointed Chief Executive Officer, Ryan Cohen.
AlmaStreet Capital, an analyst at Seeking Alpha, suggests that Cohen, who plans to adopt a highly frugal approach, may explore investments in cloud gaming and virtual reality. Furthermore, he might be considering strategic partnerships within the gaming industry. Cohen’s background in e-commerce and customer service positions him as a potential beacon of hope for GameStop, especially given the formidable challenges posed by the evolving gaming industry landscape.
GameStop shares have endured a 45% decline over the past six months and are trading below their 200-day moving average. Short interest on the stock currently stands at 22.4% of the total float.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
