Key Takeaway
1. Investors eagerly anticipate GameStop's Fiscal Q3 2024 earnings report scheduled for December 6th, following the recent stock movement.
2. Despite challenges, there's speculation that GameStop could report a profitable quarter, presenting a potential catalyst for its shares and contributing to a noteworthy turnaround.
The Reversal Is In
GameStop's (GME) - recent stock performance has shown signs of a turnaround. After a decline of more than 55% since its peak in mid-June, GameStop shares surged 13% in the trading session on November 28, with an additional 12% increase in after-hours trading.
While there isn't a specific catalyst related to business fundamentals for this short-term reversal, the most plausible reason is the stock's extended stay in oversold territory since September. The 14-day Money Flow Index (MFI) has been trading below 20 for the first time since July 2019, signaling an overselling condition. Additionally, the Relative Strength Index (RSI) has been hovering very close to oversold territory since mid-October.
GameStop's Earnings Just Around The Corner
The recent reversal in GameStop's stock occurred just ahead of the company's Fiscal Q3 2024 earnings report scheduled for December 6.
In the preceding three quarters, GameStop reported earnings per share (EPS) of 0.16 cents in January (primarily attributed to a robust holiday season), -0.17 cents in April, and -0.01 cents in July.
It's important to note that the October quarter, which precedes the holiday season, poses challenges for the video game retailer chain. The third quarter is commonly a seasonally slow period for retail companies, lacking significant holidays. Furthermore, the release of major gaming consoles and blockbuster video game titles typically occurs in Q4. Consequently, consumer spending patterns may decline compared to other quarters, especially on non-essential items like gaming products.
Price Momentum
GME is trading near the bottom of its 52-week range and below its 200-day simple moving average.
What does this mean?
Investors have been pushing the share price lower, and the stock still appears to have downward momentum. This is a neutral sign for the stock's future value.
1. Investors eagerly anticipate GameStop's Fiscal Q3 2024 earnings report scheduled for December 6th, following the recent stock movement.
2. Despite challenges, there's speculation that GameStop could report a profitable quarter, presenting a potential catalyst for its shares and contributing to a noteworthy turnaround.
The Reversal Is In
GameStop's (GME) - recent stock performance has shown signs of a turnaround. After a decline of more than 55% since its peak in mid-June, GameStop shares surged 13% in the trading session on November 28, with an additional 12% increase in after-hours trading.
While there isn't a specific catalyst related to business fundamentals for this short-term reversal, the most plausible reason is the stock's extended stay in oversold territory since September. The 14-day Money Flow Index (MFI) has been trading below 20 for the first time since July 2019, signaling an overselling condition. Additionally, the Relative Strength Index (RSI) has been hovering very close to oversold territory since mid-October.
GameStop's Earnings Just Around The Corner
The recent reversal in GameStop's stock occurred just ahead of the company's Fiscal Q3 2024 earnings report scheduled for December 6.
In the preceding three quarters, GameStop reported earnings per share (EPS) of 0.16 cents in January (primarily attributed to a robust holiday season), -0.17 cents in April, and -0.01 cents in July.
It's important to note that the October quarter, which precedes the holiday season, poses challenges for the video game retailer chain. The third quarter is commonly a seasonally slow period for retail companies, lacking significant holidays. Furthermore, the release of major gaming consoles and blockbuster video game titles typically occurs in Q4. Consequently, consumer spending patterns may decline compared to other quarters, especially on non-essential items like gaming products.
Price Momentum
GME is trading near the bottom of its 52-week range and below its 200-day simple moving average.
What does this mean?
Investors have been pushing the share price lower, and the stock still appears to have downward momentum. This is a neutral sign for the stock's future value.
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