GameStop’s Earnings Dump: Winners Get Sad
In short: @GME surprised nobody – it hit the earnings bar, missed the money bucket, and shot its own stock down ~6% in the after‑hours limbo.
What the Numbers Say
- Beat earnings estimates
- Posted a loss of $3.1 million – better than the board’s expectations but still a red flag
- Revenue fell short by about $100 million – a gap wider than the gap between wizards and mahogany desks.
- After the announcement, the share price slid 6% in aftermarket trading.
How the “Meme‑Stock” Frenzy Unraveled
Late November and early December, the stock got a turbo‑charged boost: +45% in just two days.
- Volume exploded – >10× the average on Nov 29 when the price jumped 20%.
- Peak on Nov 29 hit $17.56; the candle now sits >20% below that, with a recent high of $17.41 on Dec 4.
- After the enthusiasm fade, the stock slid 18% from the peak before holding its lower high.
Bottom Line
The memo stock saga is winding down. Despite the earnings win, the gap between expectation and reality shivered through the share price, leaving the meme‑investors pretty jaded.
Can GameStop still rally?
GME: A Long‑Running Pitch‑fork to the Bottom
Hold up, because GameStop isn’t exactly the disruptor it once was. Its earnings are tottering like a house on a shaky foundation, and the share price is still sliding down the slope that started after the big short‑squeeze epoch of early 2021.
What the Analyst Says
Trading.biz’s Cory Mitchell notes:
- Lower highs for nearly three years: The company has managed to make smaller and smaller peaks.
- Rallies fading fast: The recent shoots to the upside have been short‑lived and diminishing.
- Negative growth ahead: Earnings are expected to slump further, and they’ve already been in the red for several years.
- Sales declining: On average, sales are down 9% per year over the last five years.
- No bright spark: The only momentary glimpse of optimism comes from brief, fleeting short‑squeeze events.
Bottom Line?
Beyond the occasional flashy short‑squeeze, there’s little that’s pointing toward a bullish future for GameStop—at least until the market throws a curveball that every investor hopes for. The company is knee‑deep in loss while the share price keeps climbing a slope rather than surfing a wave.
GameStop’s Short‑Float Saga
GameStop (GME) is still sitting on a 23% short float. That’s a decent chunk, but it isn’t flirting with the denouement of the most heavily shorted stocks set. Tivic Health Systems is a step further with a staggering 60%, and Ebix (EBIX) follows suit at 51%. The list goes on – plenty of names with a higher short float than GME.
Can the Meme Band perform a coup?
Sure, the meme‑hype crowd could squeeze the price up, but there’s little “bottom line” here that would push GME to the next level. StockRover, armed with scanning and fundamental analysis, prices GME at a “fair” value of about $10.77 based on industry multiples. That’s smoking distance from the near‑$14 market price.
Where’s the Pine‑Line?
Since 2022, the rallies have been jitterbugging around the 200‑day simple moving average (SMA). The price does have wild moments where it glitches over that line, but those are very fleeting. The current 200‑day SMA sits at $19.23 – a solid 30% above yesterday’s close of $14.84.
- Price unlikely to climb that far on a single “day.”
- Overall trend remains downward.
- Historical pattern suggests any climb would stall around $20.
Short‑Squeeze vs. Genuine Growth
A short‑squeeze is like a fireworks show – dazzling for a brief moment but short‑lived. For GME to truly chase a high‑rise, the company must turn profitable and ignite real growth. That’s the key to a longer‑term bullish journey, beyond just a fleeting squeeze frenzy.
