GameStop
GME
Earnings Preview
The company is expected to report a loss of (-$0.15)/share on $$1.14 billion in revenue. Meanwhile, the so-called Whisper number is a loss of (-$0.17)/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals
The company made headlines in 2021 when it had the historic short squeeze. Hollywood made a movie, titled Dumb Money, about the events and that is slated to be released soon. The company has been losing money for years and needs a bullish catalyst to help it turnaround.
A Closer Look At The Technicals
Technically, the stock fell hard after its historic short squeeze rally. The stock has been falling for years and is doing its best to bottom. A new uptrend will be confirmed if the stock can trade -and stay- above $27/share. Until then, the trend, and, the path of least resistance is down. The bulls want to see the stock gap up on the news and the bears want to see it gap down.
Pay Attention To How The Stock Reacts To The News
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
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