How To Trade GameStop Stock Ahead of Its Upcoming Earnings?

From Nasdaq: 2025-06-09 00:45:00

GameStop is set to announce earnings on June 10, 2025, with a historical positive one-day return in 55% of instances, with a median gain of 10.2%. Analysts project $0.08 EPS on $754 million in sales, contrasting with a loss in the same quarter last year. The company has diversified beyond video games, including cryptocurrency investments.

Understanding historical patterns for GameStop’s earnings can benefit traders, with two approaches suggested: pre-earnings positioning and post-earnings positioning. GameStop has diversified its business beyond traditional video game sales, now offering physical and digital products, including cryptocurrency investments. Analysts project $0.08 EPS on $754 million in sales for the upcoming earnings report.

Historical data shows that positive one-day post-earnings returns were observed about 55% of the time over the last five years. There is a correlation between short-term and medium-term returns post-earnings, allowing traders to position themselves based on historical data. Peer performance can also influence post-earnings stock reaction.

For traders seeking upside with lower volatility, the Trefis High Quality portfolio has outperformed the S&P 500. Additionally, understanding the correlation between short-term and medium-term post-earnings returns can inform trading decisions for GameStop. Peer performance can also impact stock reaction post-earnings.



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