Earnings Preview: What To Expect From GameStop Today

NEW YORK, NEW YORK - SEPTEMBER 16: People pass a GameStop store in lower Manhattan on September 16, 2019 in New York City. GameStop has announced that they will be closing between 180 and 200 stores before the end of the fiscal year due to a drop in sales. (Photo by Spencer Platt/Getty Images) Getty Images

GameStop Corp GME . is scheduled to report earnings after Wednesday’s close. The stock just hit a record high of $483.00 and is currently trading near $194/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:

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Earnings Preview:

GameStop is expected to report a loss of ($0.41)/share on $1.12 billion in revenue. Meanwhile, the so-called Whisper number is a loss of $(0.38). The Whisper number is the Street's unofficial view on earnings.

A Closer Look At The Fundamentals:

Fundamentally, the company is still losing money and is expected to loss money in 2021. The stock was caught up in the meme stock short squeeze mania earlier this year. Investors want to see if the company has a clear plan to prosperity.

A Closer Look At The Chart:

Technically, the stock is acting well as it continues to consolidate the huge move it saw earlier this year. The bulls want to see the stock gap up after reporting earnings and the bears want to see it gap down.

Pay Attention To How The Stock Reacts To The News:

From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news.