GameStop To The Moon On Earnings?

The one-time darling of meme stocks, GameStop Corp. (GME) is scheduled to release first quarter fiscal 2023 results after the market closes on Wednesday, June 7, 2023. The Company will host an investor conference call at 5:00 pm ET on the same day to review its results.

Analysts anticipate a loss of 12 cents per share (EPS) for the quarter, compared to a loss of 52 cents for the same period last year. Sales are expected to dip slightly to $1.36 billion compared to $1.38 billion last year. (1)

GME shares have been on a run since the cycle bottom in early May. According to our take on the video game retailer’s chart, GameStop appears to be in the process of completing the right side of a “V” pattern. If we’ve made the correct call, then GME’s earnings could push the stock to approximately $27 to finish off the V pattern. A close above $27 might put $30 into play, in our technical opinion.

On the downside, the stock should catch support between $23 and its 50-day moving average of $21.65 and rising (probably $22 by next Wednesday’s release). Short-term investors might consider cutting losses if GME closes below the 50-day benchmark.

Longer-term, a solid earnings report card with bullish guidance could put GameStop on the path of a golden cross. That’s when the 50-day moves from below to above the 200-day moving average. The 50-day is aggressively moving higher as the 200-day falls. They appear to be on a collision course and would be considered bullish if they switch positions.

Trading earnings is only for the most aggressive investors who can afford to lose money in short timeframes.

Rich Meyers


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