GameStop stock is building positive momentum. Why is GME stock trading higher?Cohen Outlines $100B Acquisition VisionCohen Signals Confidence In TurnaroundMeanwhile, in early February, Fox Business host Charles Payne said he postponed an interview because Cohen was "working on something monumental" he wasn't ready to reveal.Earnings Loom Amid Premium ValuationLooking further out, the next major catalyst for the stock arrives with the March 24 earnings report.EPS Estimate: 31 cents (Up from 30 cents)Revenue ...

We recently published 10 Big Names Ending January With Explosive Gains.  GameStop Corp. (NYSE:GME) was one of the top performers on Friday. GameStop grew its share prices by 4.78 percent on Friday to close at $23.88 apiece as investors digested announcements that it is set to acquire a huge company that could support its transformation into a several-hundred-billion-dollar entity. “It’s gonna be really big. Really big. Very, very, very big,” GameStop Corp. (NYSE:GME) CEO Ryan Cohen said in an interview w ...

Core Insights - Michael Burry, known for his role in The Big Short, sold his entire GameStop position in late 2020, missing a significant short squeeze in January 2021, which could have resulted in a billion-dollar gain [1][2] - Burry's recent analysis titled "GameStop, The Prequel" discusses a unique market phenomenon involving retail traders and a gamma squeeze [2] - GameStop currently has $8.8 billion in cash and a market cap of $9.9 billion, despite a 27% decline in stock value in 2025 [3] Financial Performance - In fiscal Q3 of 2026, GameStop reported an operating income of $41 million, a significant improvement from a $33 million loss in the previous year, with net income rising from $17 million to $77 million [5] - The company ended Q1 with nearly $9 billion in cash and marketable securities, up from $4.6 billion a year ago [5] - Cost-cutting measures led to a 21% reduction in selling, general, and administrative expenses, decreasing from $282 million to $221 million year-over-year [6] Strategic Changes - GameStop is exiting underperforming international markets, including Canada and France, following previous exits in Germany and Italy, which has improved profitability in remaining locations [7] - The company's business model has been revamped under Ryan Cohen's leadership, with Burry noting that the current situation is similar to his 2018 thesis but with significantly larger numbers [4]

Core Viewpoint - GameStop's upcoming third quarter results are pivotal in assessing CEO Ryan Cohen's turnaround strategy, which emphasizes a no-hype, disciplined approach to achieving profitability [1][6]. Group 1: Cohen's Transformation Strategy - Since becoming CEO in September 2023, Cohen has shifted away from the previous media-centric and meme-driven identity of GameStop, focusing instead on cost-cutting, cash preservation, and achieving profitability without grand promises [3][4]. - The strategy involves significant frugality, including closing underperforming stores, reducing workforce, and minimizing operating costs, with a long-term vision of creating a sustainable company [4][6]. Group 2: Market Expectations and Technical Analysis - Analysts expect earnings per share (EPS) of 20 cents on revenue of $987 million, but guidance and commentary may be more critical than the actual numbers [6]. - GameStop's stock is currently showing positive technical indicators, with a price of $23.35 above key moving averages, suggesting a potential bullish trend if it breaks through the 200-day moving average at $24.44 [4][5]. Group 3: Implications of Results - The upcoming earnings report is not about positioning GameStop as a tech giant or reviving its meme-stock status, but rather about validating Cohen's minimalist and disciplined strategy [7]. - If the results indicate improved execution and profitability potential, the lack of hype could lead to a positive market reaction, while disappointing results may raise questions about the effectiveness of the current strategy [6][7].

Core Insights - GameStop (NYSE:GME) is scheduled to release its earnings on June 10, 2025, with historical data indicating a favorable one-day return in 55% of cases following earnings announcements over the past five years, averaging a positive return of 10.2% [2][7] - Analysts forecast earnings of $0.08 per share and sales of $754 million for the upcoming report, contrasting with a loss of $0.12 per share and sales of $882 million in the same quarter last year [4] - GameStop has expanded its operations beyond traditional video game sales, now offering a mix of physical and digital products, including cryptocurrency investments, having acquired 4,710 bitcoins valued at over $500 million [3] Financial Performance - GameStop currently has a market capitalization of $13 billion, with recorded revenue of $3.8 billion over the past twelve months, an operating loss of $16 million, and a net income of $131 million [4] - Historical data shows that out of 20 earnings data points over the last five years, 11 resulted in positive one-day returns, with a median positive return of 10% and a median negative return of -18% [7] Trading Strategies - Traders can utilize historical trends to position themselves before and after earnings announcements, assessing the likelihood of positive post-earnings returns [6] - A strategy involving the correlation between short-term and medium-term returns post-earnings can be effective, particularly if the 1D and 5D returns show a strong correlation [8]