Circle Squared Alternative Investments, Jeff Sica, discusses GameStop reports and Vizio prepares to be announced.
GameStop Corp. will deliver its first quarterly results since the Reddit trading frenzy boosted its share price.
Shares of Grapevine, a Texas-based video game retailer, rose 932% this year and closed at $ 194.49 apiece on Monday. They hit a high of $ 483 on January 28, while WallStreetBets traders banded together on the Reddit message board to push short sellers.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| GME | GAMESTOP | 185.28 | -9.21 | -4.73% |
The short press was fueled by the news that Chewy’s founder Ryan Cohen’s investment firm RC Ventures has built up a large stake in GameStop with the aim of transforming the company into an e-commerce giant that offers a wide range of merchandise with fast shipping sales. The firm now owns 13% of the shares.
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Cohen, who was earlier this month, was officially tasked with leading GameStop’s e-commerce business. He has been appointed chair of a special committee that will identify initiatives to accelerate the transformation.
GameStop announced the departure of Frank Hamlin’s principal customer officer on Tuesday. His retirement comes about two weeks after the company announced that CFO Jim Bell had resigned from March 26.
Changes have been underway for weeks with the company naming Matt Francis, a former engineering leader at Amazon Web Services, as its first chief technology officer in February.
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Investors will pay close attention to the progress of the company’s e-commerce amid declining sales in its physical retail space.
GameStop said online sales rose 309% during the key nine-week holiday season, which ended on January 2nd. However, total sales fell 3.1% year-on-year to $ 1.77 billion as strong console demand was offset by the closure of physical stores due to COVID-19 and supply constraints on the chain.
GameStop is expected to report earnings of $ 1.35 per share in the fourth quarter on revenue of $ 2.23 billion. The company earned $ 1.27 per share in sales of $ 2.19 billion in the previous quarter.