A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."
During the last quarter of 2020, GameStop recorded earnings per share of $1.34 on the revenue of $2.12 billion.
GameStop Corp (NYSE: GME) stock closed yesterday trading at $183.75, up 52.69% from the day’s opening price. Meanwhile, GME shares were up approximately 4.56% during the after-hours trading session to trade around $192.12. The GameStop (GME) stock spike on Thursday was not bolstered by any major fundamental news but the buyers kept on short squeezing. The rise on Thursday preceded a prior dip on March 23 and 24 that saw the stock fall over 34% in less than 24-hours. Notably, GameStop reported its first quarterly earnings since the January frenzy that saw its stocks skyrocket in less than a month.
However, the company’s Q4 earnings were not impressive to most investors and Wall Street analysts. During the last quarter of 2020, GameStop recorded earnings per share of $1.34 on revenue of $2.12 billion. The figures were below analysts’ expectations as per a survey by Refinitiv on six different analysts, whereby they expected the company to report earnings per share of $1.35 on revenue of $2.21 billion.
GameStop Performance and GME Stock
Typically, GameStop earnings spike during the fourth quarter fueled by the holiday spendings. Additionally, this time around the company had its earnings bolstered by the shift in e-commerce sales. According to the fourth quarter earnings results, GameStop said global e-commerce sales jumped 175% and accounted for more than a third of its sales in the period.
Another notable announcement that the company made during the earnings report was that it expects to sell additional shares to fund its transformation. On the positive side, the company named former Amazon and Google executive Jenna Owens as its new chief operating officer. Together with other new board members, they are expected to steer forward the company through the transformation to e-commerce sales.
Despite the increased volatility in GME stocks in the past few months, they have managed to add approximately 4066% in the past year. Moreover, they are up approximately 811%, and 69% in the past three months and one month respectively.
Notably, the company has a reported market valuation of approximately $8.42 billion, with 69.75 million outstanding shares. A survey conducted by MarketWatch indicates that GME stocks received an average of Under rating from six ratings.
From a technical point of view, GameStop stocks are at a critical crossroads that will define its structure in the next few weeks and months. Notably, GME stocks rebounded strongly from the daily 50 moving average. If the buyers are capable of holding their position and retaining the current levels as support, GameStop stock could be aiming for the all-time high.
However, if the sellers manage to short GME stocks below the 50 MA, the next support would be on the higher weekly 200 moving average.