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GameStop (GME) climbs 6% as earnings release looms

By Monte Stewart


GameStop stock price appears on a cell-phone readout outside a store
GameStop stock price rose more than 6% Tuesday as the company prepared to report earnings Wednesday - Photo: Shutterstock

GameStop stock climbed more than 6% on Tuesday, closing up $10.69 to $177.81, one day before the US gaming retailer delivers its quarterly earnings report.

Grapevine, Texas-based GameStop (GME) sells games, consoles, and other gaming-related electronic devices, as well as toys and collectibles, at bricks-and-mortar locations and online. In recent days, Ascendiant downgraded GameStop to a sell rating and Wedbush maintained an underperform assessment.

Analysts expect 52-cent-per-share loss

Analysts polled by Dow Jones expect GameStop to post an adjusted loss per share of 52 cents.

In the second quarter GameStop cut its loss almost in half, to $61.6m (£46.50) from $113.3m from the same period in 2020. And, net sales soared 25.58% to $1.183bn from $942m a year earlier on strong hardware sales. But the company’s stock fell 7.7% following the release of the quarterly report.

GameStop’s share price has been extremely volatile this year, largely because of social media hype. In January, the stock rose 1,784.06% to $325.00 from $17.25 following comments by Reddit users.


2,072.25 Price
+1.760% 1D Chg, %
Long position overnight fee -0.0193%
Short position overnight fee 0.0111%
Overnight fee time 22:00 (UTC)
Spread 0.30

Oil - Crude

74.50 Price
-1.560% 1D Chg, %
Long position overnight fee -0.0136%
Short position overnight fee -0.0083%
Overnight fee time 22:00 (UTC)
Spread 0.040


39,654.65 Price
+0.160% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00


16,001.20 Price
+0.470% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 7.0

“If I were long in GME, I would hold but I certainly would not buy in further,” said Tony Klein, an associated finance professor at Queen’s University in Belfast, Ireland told in early September.

The stock fell 18.67% between the market close on 8 November and Tuesday.


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Markets in this article

GameStop Corp (Extended Hours)
15.36 USD
0.84 +5.850%
GameStop Corp (Extended Hours)
15.36 USD
0.84 +5.850%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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