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Author : Globenews9 Last Updated, Mar 23, 2021, 12:24 PM Business
GameStop to Release First Earnings Report Since Reddit-Fueled Stock Rally
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Weeks after GameStop Corp. played a starring role in a Wall Street trading frenzy, the videogame retailer’s financial performance and fundamentals are returning to center stage.

GameStop is slated Tuesday to issue its first quarterly earnings report since a Reddit community successfully encouraged hordes of people to buy shares of it and other heavily shorted public companies, sparking a congressional hearing and the development of at least two Hollywood productions.

Some GameStop shareholders have said they believe the retailer can live up to its lofty new stock price with help from Ryan Cohen, the Chewy Inc. co-founder recently added to the company’s board. GameStop’s share price of more than $194 at Monday’s close is more than 10 times as much as it was at the start of the year, though the stock peaked at $483 in intraday trading in late January.

Wedbush Securities analyst Michael Pachter said it isn’t possible for GameStop’s results to reflect its roughly $14 billion valuation given the issues it is facing.

“There is not an institutional investor alive who is considering going long at $200” a share, Mr. Pachter said. “This is not a dot-com that’s just starting up.”

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