GameStop said back in April that preliminary sales were up about 11% year-over-year
GameStop (GME) is expected to report first quarter results after market close on Wednesday, June 9, with a conference call scheduled for 5:00 pm ET. What to watch for:
1. PRELIMINARY SALES: On April 5, GameStop said that for the first nine-weeks of fiscal 2021, total global sales increased approximately 11% from the nine-week period ended April 4, 2020. February: the four-week period ended February 27, 2021 total global sales increased approximately 5.3% from the four-week period ended February 29, 2020. March: the five-week period ended April 2, 2021 total global sales increased approximately 18% from the five-week period ended April 4, 2020.
2. MEME STOCKS: The Securities and Exchange Commission told Bloomberg earlier this week in an emailed statement that it is scrutinizing markets for signs of manipulation and other misconduct as AMC Entertainment (AMC) and other 'meme stocks' continue to move higher. "SEC staff continues to monitor the market in light of the ongoing volatility in certain stocks to determine if there have been any disruptions of the market, manipulative trading or other misconduct. In addition, we will act to protect retail investors if violations of federal securities laws are found," the agency said. GameStop has been among the so-called meme stocks for quite some time, as members of the WallStreetBets subreddit turned their attention to the retailer and other names like BlackBerry (BB), AMC and Bed Bath & Beyond (BBBY).
Back in April Ascendiant analyst Edward Woo downgraded GameStop to Sell from Hold with a price target of $10, down from $12. The Reddit trading surge" is likely to fade as "digital threats increases," Woo told investors in a research note at the time. The analyst argued that he sees "significant digital and execution risks" for GameStop and a "hazy" outlook for fiscal 2021 despite "strong new consoles launches."
3. RYAN COHEN BECOMES CHAIRMAN: Chewy (CHWY) co-founder Ryan Cohen became GameStop's chairman on Wednesday, solidifying his oversight of the company as it seeks to manage expectations of shareholders bullish on its turnaround potential. At the annual shareholder meeting, a majority of incumbent members will resign from the board; the company nominated five others for election, including departing CEO George Sherman, who stepped down back in April.