GameStop (GME) will report fourth-quarter results, its first earnings report since the massive Reddit-fueled short squeeze after the market closes Tuesday. GME stock fell following another high-profile executive departure.
XGameStop Earnings
Estimates: Analysts see earnings climbing 15% to $1.46 per share as revenue rises 2.2% to $2.24 billion, according to Zacks Investment Research. Same-store sales are expected to climb 8.1%, according to Consensus Metrix.
Results: Check back after the close.
On Tuesday, GameStop announced that Frank Hamlin, its chief customer officer, will step down on March 31. Last month, Jim Bell, GameStop's chief financial officer, announced he was leaving the company on March 26.
The two departures come as activist investor and Chewy.com (CHWY) co-founder Ryan Cohen pushes for GameStop to revamp its business model and add more offerings online.
Stock: Shares fell 5.3% to 184.21 on the stock market today. GME stock soared as high as 483 in late January but tumbled in February before rebounding slightly and falling again this month. GameStop stock remains above its 50-day and 200-day lines as well as year-ago levels, according to MarketSmith chart analysis.
Among other stocks in the Reddit rally, AMC Networks (AMC) fell 10%, and Discovery (DISCA) dropped 5.6%.
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GME Stock Short Squeeze Frenzy
GameStop found itself in the middle of a short-squeeze mania brought on by the Reddit group r/wallstreetbets, which looked to take on hedge funds who bet that the stock would fall.
A House Financial Services Committee grilled officials in February about the relationship between the Robinhood trading app and Wall Street, after the app placed restrictions on the GME stock and other Reddit short-squeezed stocks.
The short-squeeze could be running out of juice. An S&P Global Market Intelligence report showed that short-selling overall fell in late February with short-selling in GameStop stock tumbling more than 80%. The investing strategy by Reddit group r/wallstreetbets needs heavily shorted stocks for quick gains.
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GME Stock Falls Ahead Of First Earnings Report Since Reddit Short Squeeze - Investor's Business Daily
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