GameStop (GME) will report fourth-quarter results, its first earnings report since the massive pressure driven by Reddit after the market closed on Tuesday. GME shares fell after another high-profile executive departure.
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GameStop Earnings
Estimates: Analysts see earnings rise 15% to $ 1.46 per share as earnings rise 2.2% to $ 2.24 billion, according to Zacks Investment Research. According to Consensus Metrix, sales of the same stores will climb by 8.1%.
Results: Look at the closure again.
GameStop announced on Tuesday that Frank Hamlin, the customer’s chief executive officer, will retire on March 31. Last month, GameStop Chief Financial Officer Jim Bell announced that he was leaving the company on March 26.
The two rooms come as activist investor and Chewy.com (CHWY) co-founder Ryan Cohen is pushing for GameStop to revamp its business model and add more deals online.
Stock: Shares fell 5.3% on the stock market to 184.21 today. GME stocks rose to 483 at the end of January, but tumbled in February before falling slightly and falling again this month. According to MarketSmith’s chart analysis, the GameStop share remains above the 50 and 200 day lines as well as year-ago levels.
Among other things, shares in the Reddit rally, AMC Networks (AMC) decreased by 10% and Discovery (DISCA) decreased by 5.6%.
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GME Stock Short Print Frenzy
GameStop finds itself in the middle of a short-press mania caused by the Reddit group r / wallstreetbets, and wanted to take on hedge funds that bet the stock would fall.
An in-house financial services committee spoke to 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-cut stocks.
The short pressure can affect juice. A report by S&P Global Market Intelligence showed that short-term sales fell at the end of February with GameStop short-term sales falling more than 80%. The investment strategy of the Reddit group r / wallstreetbets requires stocks with a very short circuit for quick gains.
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