From Nasdaq: 2025-06-02 11:32:00

GameStop Corp. is set to announce its first-quarter fiscal 2025 earnings on June 10. Investors must decide whether to buy the stock or hold. The company is transitioning to a digital-focused model to align with changing consumer behavior. Q1 revenue is expected to be $750 million, with an estimated EPS of 8 cents, a 166.7% increase year-over-year.

The Zacks Consensus Estimate indicates a 16% decrease in first-quarter revenues for GameStop. The company has a history of surpassing earnings estimates, with a trailing four-quarter average surprise of 137.8%. However, the Zacks Model does not predict an earnings beat this time, with a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%.

GameStop’s first-quarter results will showcase its ongoing transformation and challenges in its legacy business. The company is expanding into collectibles and improving logistics while facing declines in Hardware & Accessories and Software sales. The results may reflect the impact of the company’s cost structure optimization and international restructuring efforts.

Despite facing industry challenges, GameStop’s stock price has surged 12% in the past month, outperforming competitors like Best Buy, Microsoft, and Sony. The company’s premium valuation relative to industry peers raises questions about entry points for investors. While the evolving business model shows promise, caution is advised due to the stock’s valuation and uncertainty around earnings.

A new top chip stock recommended by Zacks Investment Research is poised for growth in the semiconductor industry. With strong earnings growth and a growing customer base, the company is well-positioned to meet the rising demand for AI, ML, and IoT technologies. Global semiconductor manufacturing is projected to reach $803 billion by 2028.



Read more at Nasdaq: Should GameStop Stock Be in Your Portfolio Pre-Q1 Earnings?