GameStop set to gap down on open today following earnings miss.

  • GME.us
    (${instrument.percentChange}%)

GameStop (GME.us) shares are set to gap lower on today's gap cash open, after the videogame retailer reported worse-than-expected revenue for its fourth quarter ended January. Adjusted EPS came in at 22 cents, with analysts forecasting 30 cents per share. Sales were also below the consensus of $2.05 billion at $1.79 billion. Hardware and accessories sales fell to $1.09 billion, down from $1.24 billion, and software sales declined 31% to $465 million from $670 million.

There are questions around the company's business model with consumers moving towards digital game download purchases over physical consol purchases.

In its 10-K SEC filing, GameStop enabled a committee, including CEO Ryan Cohen and two independent board members, to manage the company's investments. This decision, greenlit in December, permits GameStop to invest in various assets, including stocks.

As of close yesterday, GME.us was down around 10% for the year to date. However, this is set to worsen tyoday following its earnings release. Company shares traded 17% down to $12.86 in after-hours trading.

Russell Shor

Senior Market Specialist

Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}
Disclosure
*

When executing customers' trades, FXCM can be compensated in several ways, which include, but are not limited to: spreads, charging commissions at the open and close of a trade, and adding a mark-up to rollover, etc. Commission-based pricing is applicable to Active Trader account types.

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.