GameStop Corp (NYSE:GME) shares are trading flat Tuesday morning as investors watch for the company’s third-quarter earnings report, scheduled for release after the closing bell. Here’s what investors need to know.
What To Know: Wall Street anticipates a strong quarter, with analysts forecasting revenue to jump to $987.3 million, up from $860.3 million a year ago, and earnings per share to hit 20 cents, a rise from last year’s 6 cents.
A profit reported Tuesday would mark GameStop’s sixth consecutive profitable quarter, signaling a potential turnaround in its operational efficiency.
Market attention is shifting from traditional software sales, which remain a weak spot (down 26.6% year-over-year), to GameStop’s aggressive diversification. Key segments to watch include the impact of the recently launched Nintendo Switch 2 on hardware sales and a surging collectibles segment, which is expected to show over 63% growth.
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Investors are also awaiting updates on the company’s Bitcoin strategy. GameStop previously disclosed holdings valued at $528.6 million and may reveal further cryptocurrency investments.
While volatility spiked recently following the release of 2019 emails between “Big Short” investor Michael Burry and “Roaring Kitty” Keith Gill, focus has pivoted back to fundamentals.
Traders will be watching to see if the recent viral “Trade Anything Day” promotion successfully drove store traffic and if the pivot to crypto and collectibles can definitively offset legacy video game weakness.
Benzinga Edge Rankings: GameStop’s outstanding Growth score of 99.36 stands out in Benzinga Edge rankings, contrasting sharply with its low Momentum score of 17.26.
GME Price Action: GameStop shares are flat at $23.37 at the time of publication on Tuesday, according to Benzinga Pro data.
The 52-week range for GameStop has been between $19.93 and $35.81, highlighting significant volatility in the stock’s price. The current price is closer to the lower end of this range, which may indicate potential support around the $20 level. If the stock can maintain its position above this support, it may attract buyers looking for a bargain.
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