{"id":128272,"date":"2021-06-09T20:57:44","date_gmt":"2021-06-09T20:57:44","guid":{"rendered":"https:\/\/precoinnews.com\/?p=128272"},"modified":"2021-06-09T20:57:44","modified_gmt":"2021-06-09T20:57:44","slug":"gamestop-gains-as-traders-await-quarterly-report","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/business\/gamestop-gains-as-traders-await-quarterly-report\/","title":{"rendered":"GameStop gains as traders await quarterly report"},"content":{"rendered":"
(Reuters) – GameStop\u2019s stock jumped 7% on Wednesday before the company was due to release its quarterly results, which a cult following of individual investors will scrutinize for progress in the videogame retailer\u2019s turnaround amid this year\u2019s rally in its shares.<\/p> The stock extended gains and was on track to end the session at its highest closing price since January.<\/p>\n Top shareholder Ryan Cohen, the billionaire co-founder of online pet supplies retailer Chewy, was elected chairman at a brief annual shareholders meeting ahead of the report. GameStop previously announced his nomination.<\/p>\n \u201cAs my dad would say, buckle up,\u201d Cohen told shareholders.<\/p>\n GameStop\u2019s volatile shares have doubled in the past month, and they are now just 7% below their closing high in January. That was when a massive surge driven by investors on Reddit\u2019s wallstreetbets trading forum made the stock the most traded on the U.S. market for several days.<\/p>\n A recent rally in AMC Entertainment Holdings has attracted increased attention from individual investors and commenters on wallstreetbets, but GameStop remains one of the most discussed stocks on the forum.<\/p>\n AMC tumbled 8%, and it remains up over 2,200% year to date, compared to a rise of over 1,600% in GameStop.<\/p>\n Options prices imply GameStop\u2019s stock could swing 24% in either direction by Friday, according to Trade Alert data.<\/p>\n Graphic: GameStop stock price and turnover –<\/p>\n While the recent rollout of new videogame consoles is likely to benefit GameStop, analysts warn that its soaring stock price has become disconnected from the company\u2019s day-to-day business. At least two Wall Street analysts recently dropped coverage of the company.<\/p>\n GameStop\u2019s core business of selling new and pre-owned videogame disks is shrinking as consumers move to downloading games digitally or streaming, and it has lost money for the past three years.<\/p>\n Cohen hopes to transition GameStop into an ecommerce business that can take on big-box retailers. He told shareholders at Wednesday\u2019s meeting in Grapevine, Texas that they had \u201cushered in a whole new era at GameStop,\u201d but he declined to provide a detailed plan.<\/p>\n The company has yet to announce a replacement for Chief Executive George Sherman, who it has said will step down by July 31.<\/p>\n \u201cThe bullish views of retail investors and GameStop\u2019s long-awaited transformation strategy continue to overshadow actual results,\u201d Wedbush analyst Michael Pachter warned in a preview note.<\/p>\n GameStop short sellers currently have $3 billion at stake, up from $1.3 billion at the end of 2020, according to S3 Partners, a financial data firm.<\/p>\n Analysts on average expect revenue of $1.16 billion for the quarter ending in April, up 14% from the year before, when the coronavirus economic lockdown crippled sales of brick and mortar stores. Analysts expect an adjusted quarterly loss of 84 cents per share.<\/p>\n