What Happened?
Shares of video game retailer GameStop (NYSE: GME) jumped 3.5% in the afternoon session after investors built positions ahead of the company's second-quarter earnings report. The video game retailer is scheduled to release its results after the market closes on Tuesday, September 9.
The climb reflects renewed retail investor enthusiasm, with traders watching to see if the stock can build on its recent momentum. Analysts' expectations for the quarter vary, with revenue forecasts ranging from approximately $823 million to $900 million and earnings per share estimates between $0.16 and $0.19. Investors expected updates on the company's profitability as it continues to shift from physical game sales to digital alternatives and pursues a strategy linked to digital assets and Bitcoin.
After the initial pop the shares cooled down to $23.21, up 2.7% from previous close.
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What Is The Market Telling Us
GameStop’s shares are extremely volatile and have had 34 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock dropped 24.1% on the news that the company announced plans to raise up to $1.3 billion in convertible debt for corporate purposes, including acquiring Bitcoin. Yes, Bitcoin. The stock's reaction suggested markets were struggling to reconcile the potential impact of the crypto asset on GameStop's balance sheet, given the volatile nature of the digital currency, which could be too much of a risk for some investors to bear. The stock was also likely down due to concerns about the dilutive effect of the debt, which can be converted to the company's ordinary stock, raising the total share count.
GameStop is down 24.3% since the beginning of the year, and at $23.21 per share, it is trading 33.7% below its 52-week high of $35.01 from May 2025. Investors who bought $1,000 worth of GameStop’s shares 5 years ago would now be looking at an investment worth $12,055.
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