What's Going On With GameStop Stock Ahead Of Earnings?

GameStop Corporation GME shares are trading higher Monday as investors look ahead to the company's fourth-quarter earnings report. Here's a look at what's going on. 

What To Know:

GameStop is set to report its fourth-quarter financial results Tuesday after the market close. According to estimates from Benzinga Pro, the company is expected to report earnings of 29 cents per share and quarterly revenue of $2.05 billion. 

GameStop shares are moving on above-average trading volume Monday with more than 2.76 million shares already traded in the session, compared to the stock’s 100-day average of 3.083 million shares.

According to the latest data from Benzinga Pro, 22.42% of available GameStop shares are being sold short which can lead to outsized moves ahead of and following events such as a company's earnings release. 

Related News: What’s Going On With Marijuana Stocks Tilray And Canopy Growth As Germany Legalizes Pot?

GME Stock Prediction 2024:

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at GameStop, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For GameStop, the 200-day moving average sits at $17.04, according to Benzinga Pro, which is above the current price of $14.07. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

GME Price Action: According to Benzinga Pro, GameStop shares are up 6.83% at $14.00 at the time of publication Monday.

Image from Shutterstock