GameStop reports its earnings today. This could spark renewed interest in Meme stocks.

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GameStop stock may see renewed interest after the company announces its results.

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is expected to release its first-quarter results after the market closes on Wednesday. Stocks have rebounded from a steep decline in recent weeks, but remain well below highs seen a year ago.

Shares of the video game retailer slid 2.3% to $121.87 in the latest trades on Wednesday.


stock (ticker: GME) has traded as low as $77.58 and as high as $344.66 over the past 52 weeks.

Wednesday’s results could spark renewed interest in the meme stock as recent earnings reports preceded volatile trading for GameStop shares. The moves came despite uneventful earnings reports and a few brief quarterly conference calls with no questions from analysts.

Wedbush analyst Michael Pachter said Barrons he expects another brief conference call with prepared remarks from CEO Matt Furlong.

“Maybe a mention of NFT, Metaverse and crypto wallet; no details on their money-making strategy; no explanation of how their deep relationships with console gamers give them a competitive advantage with blockchain assets (NFTs) offered only in PC games; more promotion of their customer obsession; no progress in retail turnaround,” Pachter added.

Pachter is among three analysts who still provide FactSet with earnings estimates. The consensus between them calls for an adjusted net loss of $1.45 per share and sales of $1.32 billion in the first quarter.



co-founder Ryan Cohen joined the company as a board member in January 2021, shares have traded wildly based on a mix of factors such as retail trader enthusiasm, l interest from short sellers and aggressive options betting. Since Cohen became chairman of the board last June, the company has sought to turn the situation around by expanding its offerings, improving its logistics efforts and investing in customer service. The company has also added a series of new hires with expertise in e-commerce and tech companies, including CEO Matt Furlong who previously oversaw’s (AMZN) Australian operations.

The company launched a wallet for cryptocurrencies and non-fungible tokens in May, which it says allows users to store, send, receive and redeem crypto and NFTs without leaving their web browser. . The wallet will be used in GameStop’s NFT marketplace, which plans to launch in the current quarter. Experts doubt that GameStop’s NFT market can gain traction and have a significant impact on the company’s fortunes. The recent cryptocurrency selloff probably didn’t help.

None of this matters for the stock in the short term. S3 Partners Director Matthew Unterman said Barrons The short-selling analytics firm estimates that 14.92 million shares were recently sold short, representing 23.5% of the shares available for trading. A short position is a bet that a stock will fall, in which an investor borrows and then sells stock. Short-term interest is up 77% since the start of the year, according to Unterman. Such a typical short-term interest rate


the company has a short-term interest in low single digits – creates a cluttered trade and leaves room for possible short-term compression.

The company is also asking shareholders to increase authorized shares to $300 million at its annual meeting on Thursday. The company says the increased headroom would allow it to implement a stock split and provide more flexibility for future business needs.

Write to Connor Smith at [email protected]

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