is set to report gains after the market closes on Wednesday, as if it matters the company’s share price.
As was the case in March, GameStop’s results are likely to have less of an impact on the way stocks are traded. Although raised by AMC Entertainment AMC,
and Wendy WEN,
recently, the video game retailer is still Mother Meme’s stock and will continue to move more about what Reddit says than whether Wall Street likes its P&L or not.
Although GameStop is expected to report earnings per share of $ 0.82, despite a nearly 22% increase in quarterly sales and to advertise the launch of new game consoles as an opportunity for improvement, it may have already made its biggest news for day, officially announcing at a shareholders’ meeting on Wednesday that the 35-year-old Chewy co-founder has become a private equity investor Ryan Cohen and has been elected new chairman of the board of GameStop.
Cohen, who became the face of the influx of GameStop shares and a folk hero of the company’s devoted fans on social media, who enjoyed decoding his rare mysterious tweets aimed at engaging the crowd of retail investors, did not disappoint when he took the reins , announcing to the gathered shareholders “As my father would say, fasten.”
“I literally started to get emotional / borderline tears when I heard him say that,” user noyogapants posted aboard the Reddit Superstonk in response to Cohen’s quote. “Then I took a deep breath and told myself to collect it, because it hasn’t started yet!”
Gathering and wearing a metaphorical seat belt is a good idea for anyone trading in GameStop stocks in 2021. Shares have risen nearly 1700% so far largely thanks to retail investors who poured into the stock in January for to create one of the most epic and bizarre short squeezes ever and continued to cheer up the company’s transformation plan, which includes reviewing its leadership and taking concrete steps to move away from bricks and mortar to e-commerce.
Cohen is a major factor in this story and has been named the savior who will take the stocks “to the moon”, a major driver in the huge rise in purchases, which reappeared in late May and now the company trades over $ 300 per share for the first time from January.
GameStop shares are actually fueling Cohen’s plan, with the company completing a $ 551 million share offering at the end of April that it says will be used to pay off its significant debt and recharge the transformation.
But while outgoing GamesStop CEO George Sherman joined Cohen on board on Wednesday morning, his successor has yet to be named, creating some uncertainty for analysts after the stock. But even one of them openly admits that something concrete that can come out of the profits can be made meaningless by retail investors who have made it very clear that they “like the stock.”
“While retail investors remain largely enthusiastic about GameStop’s prospects, however,” Wedbush analyst Michael Prachter wrote in a note Monday, “the main question marks don’t matter much about the stock price.”