
Meme Stock GameStop (GME) Is About to Report Q1 Earnings Tomorrow. Here Is What to Expect
Video game retailer GameStop (GME) is set to report its quarterly earnings results tomorrow, June 10. The stock has surged about 32% over the past three months, thanks to meme stock revival and the company's surprise investment in Bitcoin (BTC). This recent momentum comes even as concerns linger over the long-term outlook for GameStop's core gaming operations.
Confident Investing Starts Here:
Wall Street analysts expect the company to report earnings of $0.08 per share, versus a loss of $0.12 in the year-ago quarter. However, revenues are expected to decline by 15% from the year-ago quarter to $750 million, according to data from the TipRanks Forecast page.
Recent Event
Ahead of the Q1 2025 print, GameStop invested in Bitcoin, following a strategy similar to Michael Saylor's Strategy (MSTR), a software company that turned into a serial Bitcoin acquirer. In a late-May filing, GameStop revealed it had purchased 4,710 Bitcoins valued at $513 million. The acquisition marked GameStop's first Bitcoin purchase since it unveiled its plans in March to start investing in crypto.
As earnings approach, investors will be watching closely for any updates on the company's digital strategy and sales trends in its retail segment.
GME's Q4 Shows Profit Surprise
In the last reported Q4 quarter, GameStop surprised with an earnings per share (EPS) of $0.30, far ahead of Wall Street's $0.08 estimate. The company posted a full-year profit of $131.3 million in 2024, a sharp turnaround from just $6.7 million the year before, mainly due to aggressive cost-cutting efforts.
However, revenue dropped 28.5% year-over-year to $1.28 billion in Q4, missing analyst expectations of $1.48 billion. Full-year revenue came in at $3.82 billion, down from $5.27 billion in 2023. The company continues to see weakness in its core video game hardware and software segments.
According to Main Street Data, GME's Hardware and Accessories segment has been on a downward trend, with recent quarters showing significant declines from earlier levels.
Options Traders Anticipate a Large Move
Using TipRanks' Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don't worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting an 11.05% move in either direction.
Is GME Stock a Buy, Sell, or Hold?
GameStop's fundamentals and unpredictable trading patterns have led many Wall Street analysts to take a step back from covering the stock. One of the few analysts still covering this stock is Michael Pachter of Wedbush, who continues to maintain a Sell rating. According to him, he sees more than 54% downside for GameStop based on his price target of $13.5 per share.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Watch These Bitcoin Price Levels as Cryptocurrency Back Near Record High
Bitcoin has hovered just below its record high in recent days as economic data has been encouraging and investor risk appetite has remained strong. The cryptocurrency's price staged a decisive breakout above a flag pattern earlier this week, laying the groundwork for a new move higher. Investors should watch key overhead areas on Bitcoin's chart around $112,000 and $137,000, while also monitoring important support levels near $107,000 and $100, (BTCUSD) has rallied over the past week to approach the record high it set last month, tracking the strong performance of U.S. equities and encouraging signals about the U.S. economy. The legacy cryptocurrency moved as high as $110,400 Wednesday morning after a closely watched inflation report showed that consumer prices rose less than expected last month, good news for investors who are hoping the Federal Reserve could be in a position to cut its benchmark interest rate this year. The price of bitcoin dropped to $108,800 recently, as U.S. stocks backed off their earlier highs as well. Once a fringe financial asset dismissed by the mainstream, cryptocurrencies have gained new legitimacy this year thanks in part to the support of President Donald Trump and several allies in Congress. The price of bitcoin has also been supported by surging demand from publicly traded companies, such as Strategy (MSTR), that use proceeds from equity sales to purchase bitcoin for corporate treasuries. Meanwhile, total assets in bitcoin exchange traded funds have ballooned to $132 billion this month, up from $91 billion in early April, pointing to growing institutional interest in the cryptocurrency. Bitcoin last hit a record high, of just under $112,000, on May 22. The digital currency has gained about 16% since the start of the year, far outpacing the performance of major stock indexes. Below, we take a closer look at Bitcoin's chart and apply technical analysis to identify key price levels worth watching out for. After hitting its all-time high last month, bitcoin's price consolidated within a flag, a chart pattern that indicates a continuation of the cryptocurrency's uptrend that started in early April. Indeed, the digital asset staged a decisive breakout above the pattern earlier this week, laying the groundwork for a new move higher. Meanwhile, the relative strength index confirms bullish price momentum, though the indicator remains below overbought levels, providing ample room for further upside. In another win for bitcoin bulls, the 50-day moving average (MA) crossed above the 200-day MA last month to form a bullish golden cross signal. Let's identify two key overhead areas to watch amid the potential for further buying and also locate support levels worth monitoring during profit-taking periods. The first overhead area to watch sits around $112,000. This area on the chart will likely attract significant scrutiny near last month's peak. A move higher could see bitcoin rally toward $137,000. We projected this target by extracting the price bars comprising the cryptocurrency's uptrend that preceded the flag and repositioning them from the pattern's breakout area. We selected this prior trend as it commenced following a breakout from a pennant pattern in late April, providing clues as to how the current breakout from a period of consolidation may unfold. During profit-taking, investors should initially monitor the $107,000 level. A retest of the prominent December and January peaks may be necessary before the cryptocurrency makes a meaningful move higher. Finally, a deeper retracement could see bitcoin's price revisit the closely-watched $100,000 level. This area would likely provide support near the psychological round number and a trendline that connects a range of corresponding trading activity on the chart stretching back to last November. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author does not own any of the above securities. Read the original article on Investopedia Sign in to access your portfolio


Business Wire
2 hours ago
- Business Wire
GameStop Announces Proposed Private Offering of $1.75 Billion of Convertible Senior Notes
GRAPEVINE, Texas--(BUSINESS WIRE)--GameStop Corp. (NYSE: GME) ('GameStop') today announced that it intends to offer, subject to market conditions and other factors, $1.75 billion aggregate principal amount of 0.00% Convertible Senior Notes due 2032 (the 'notes') in a private offering (the 'offering') to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the 'Securities Act'). GameStop also intends to grant the initial purchasers of the notes an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $250 million aggregate principal amount of notes. The notes will be general unsecured obligations of GameStop, will not bear regular interest and the principal amount of the notes will not accrete. The notes will mature on June 15, 2032, unless earlier converted, redeemed or repurchased. Upon conversion, GameStop will pay or deliver, as the case may be, cash, shares of GameStop's Class A common stock, par value $.001 per share ('Class A common stock'), or a combination of cash and shares of Class A common stock, at its election. The initial conversion rate, repurchase or redemption rights and other terms of the notes will be determined at the time of pricing of the offering. GameStop expects that the reference price used to calculate the initial conversion price for the notes will be the U.S. composite volume weighted average price of Class A common stock from 1:00 p.m. through 4:00 p.m. Eastern Daylight Time on the date of pricing. GameStop intends to use the net proceeds from the offering for general corporate purposes, including making investments in a manner consistent with GameStop's Investment Policy and potential acquisitions. Neither the notes, nor any shares of Class A common stock issuable upon conversion of the notes, if any, have been, or will be, registered under the Securities Act or any state securities laws, and unless so registered, may not be offered or sold in the United States, or to, or for the account or benefit of, U.S. Persons, absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws. This press release is neither an offer to sell nor a solicitation of an offer to buy any securities, nor shall it constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. There can be no assurances that the offering of the notes will be completed as described herein or at all. Cautionary Statement Regarding Forward-Looking Statements – Safe Harbor This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements concerning the proposed terms and the anticipated completion, timing and size of the proposed offering of the notes, the grant to the initial purchasers of the option to purchase additional notes, and the anticipated use of proceeds from the offering. These forward-looking statements are based on GameStop's current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that may cause GameStop's actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement. These risks include, but are not limited to market risks, trends and conditions. These and other risks are more fully described in GameStop's filings with the Securities and Exchange Commission ('SEC'), including in the section entitled 'Risk Factors' in its Annual Report on Form 10-K for the fiscal year ended February 1, 2025 and its Quarterly Report on Form 10-Q for the fiscal quarter ended May 3, 2025, and other filings and reports that GameStop may file from time to time with the SEC. Forward-looking statements represent GameStop's beliefs and assumptions only as of the date of this press release. GameStop disclaims any obligation to update forward-looking statements.
Yahoo
2 hours ago
- Yahoo
Peter Schiff Says He'd Admit He Was Wrong On Bitcoin If He Wakes Up In A World Where...
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Economist Peter Schiff said in a recent interview that he would admit being wrong about Bitcoin (CRYPTO: BTC) if the world wakes up to a 'hyper Bitcoinization' scenario. What Happened: During an interview that aired Monday, Schiff was asked about what it would take for him to drop his long-standing skepticism and start buying into the apex cryptocurrency. 'I haven't bought it yet, and it's gone from practically nothing to $100,000. So if that hasn't convinced me, what's going to convince me?' the Bitcoin skeptic replied. Trending: New to crypto? on Coinbase. For the sake of argument, Schiff then envisioned a Bitcoin utopia. 'I suppose what everybody is saying is one day we're going to wake up in hyper Bitcoinization and Bitcoin is going to be money. There won't be any more dollars or any more euros or any more yen.' He added that if he woke up in such a world where everything, from insurance to bonds, is priced in Bitcoin, he would have to admit that he was wrong about Bitcoin. 'i guess if I wake up in that world, I'd have to admit that I was wrong.' 'I just don't believe that that's ever going to happen because we're no closer to that now than we were 10 years ago,' Schiff was quick to add. He said Bitcoin is being used more for 'gambling' than as a medium of exchange. Why It Matters: Schiff's views on Bitcoin have been a topic of debate in the cryptocurrency community. He has consistently claimed that the leading cryptocurrency lacks intrinsic value and is destined to fail. Earlier this year, he referred to Bitcoin as a "digital risk" and predicted that the financial turmoil of 2025 could mark its end. Interestingly, Schiff said in a recent podcast that his teachings on economics inadvertently led many to invest in Bitcoin, despite his advice against it. He added that many Bitcoin 2025 conference attendees cited him as the reason they purchased the apex cryptocurrency. Read Next: A must-have for all crypto enthusiasts: Sign up for the Gemini Credit Card today and earn rewards on Bitcoin Ether, or 60+ other tokens, with every purchase. Image Via Shutterstock/Frame Stock Footage This article Peter Schiff Says He'd Admit He Was Wrong On Bitcoin If He Wakes Up In A World Where... originally appeared on