• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Investing GameStop trends ahead of earnings. But this Wedbush rating spells trouble for the stock
Investing

GameStop trends ahead of earnings. But this Wedbush rating spells trouble for the stock

by December 7, 2022
by December 7, 2022 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

If you love stocks, you already know how much enthusiasm GameStop Corp. (NYSE:GME) elicits. It’s a loved meme stock, and it is easy to see why it trended on social trading networks on Tuesday. The company reports earnings on December 07, 2022, after the market close, and retail traders can’t keep calm. Nevertheless, the stock lost nearly 2% on the day. But just how good will the results be?

According to Wedbush analysts, GameStop could surprise Wall Street when it reports earnings on Wednesday. Wedbush says the video game retailer could beat sales estimates in the third quarter. The analysts project up to $1.41 billion or £1.156 billion in sales. The sales will be ahead of the market consensus of $1.35 billion or £1.11 billion. That would represent a sales increase of 8.7% from the prior year.

However, you may be disappointed if you expect GameStop to post a profit or even narrow it down in Q3. Wedbush says the company’s loss per share will come at $0.35 per share, worse than a projected $0.28 per share loss. The analysts attribute the loss to an ongoing free cash flow burn, expected at $100 million.

Wedbush is also warning gamers ahead of the earnings. The analysts say GameStop’s transformation effort has failed to bear fruits so far. That potentially refers to actions to transform the firm into a digital business onboard the now-collapsed FTX exchange. Recent stock market news has suggested that GameStop has initiated layoffs, including teams working for its blockchain wallet.

Wedbush analysts have an underperforming rating on the stock, with a $6 price target. GME traded at $24.58 as of press time. Further crash?

GME holds strong to support at $24

GME Chart by TradingView

From the daily chart, GME holds to the support at $24. However, the MACD indicator shows momentum is weakening. Similarly, the RSI has dropped below the midpoint, suggesting a bear market. 

What to watch for?

The announced results versus the projections will help investors determine if to dump or buy GME. The company’s guidance and investor presentation will also be highly watched. 

Regardless, $24 will be the level to watch for recovery or a break below based on the quarter results and statements.

The post GameStop trends ahead of earnings. But this Wedbush rating spells trouble for the stock appeared first on Invezz.

You Might Also Like
  • New Grindr stock ticker, GRND, after merger with Tiga is now listed on eToro
  • Rolls-Royce stock price forecast 2023: risks and opportunities
  • European Union Members Divided Over a Proposal to Cap Gas Prices
  • Analyst reads full-fledged capitulation in Tesla as it becomes the most purchased stock
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Signet stock up 20%: ‘we’re prepared for a strong holiday season’
next post
Telenor IoT passes milestone of 20 million SIM cards

You may also like

Wells Fargo had its profit cut in half: ‘I’m still...

January 13, 2023

How Much Do You Need to Start Trading Options?

January 16, 2023

PayPal partners with MetaMask to allow users buy crypto

December 14, 2022

Zero Cost (Costless) Collar Explained

April 21, 2023

2023 US economic outlook given the Fed-induced economic recession

December 28, 2022

Glencore share price dived amid ESG concerns: buy the dip?

January 5, 2023

Elon Musk may soon step down as Twitter CEO: buy...

December 19, 2022

Rent the Runway stock surged: What can go wrong?

December 9, 2022

This tech stock more than doubled on Friday: here’s the...

December 16, 2022

Nike stock up 12% on Q2 earnings: should you buy?

December 20, 2022

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,630 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    How LEAPS Differ From Short-Term Options

    January 16, 2023

    Early Assignment Can Be a Gift

    March 28, 2023

    Options Theta Explained: Price Sensitivity To...

    April 22, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here