GameStop Corp (NYSE:GME) is set to announce results on Wednesday following an eventful third quarter that saw chairman Ryan Cohen taking over as president and CEO after the video game retailer fired former CEO Matt Furlong.
Furlong’s departure in June followed a larger-than-expected first-quarter loss for the video game retailer.
Cohen's appointment finalised his comprehensive takeover of the high-street chain ever since buying up a controlling stake at the start of the decade.
The meme stock is still expected to report a quarterly loss, although significantly narrower than a year ago. The consensus of analysts is for a $0.12 loss compared to a $0.31 loss in 3Q 2022, according to Zacks Investment Research.
Revenue for the quarter is likely to total $1.18 billion, down from $1.19 billion.
Ahead of its results, GameStop’s shares jumped 6.5% in Monday morning trading, taking gains for the past five sessions to 38%.
Apart from a recovery in meme stocks, investors may also be preparing for any turnaround strategy Cohen might outline along with the release of the results. Also, it was reported that traders with short positions in GameStop were caught off-guard, forcing them to cover their positions.
Contact the author at stephen.gunnion@proactiveinvestors.com