- NYSE:GME gains 7.14% as meme stocks once again ruled Wall Street on Tuesday.
- GameStop charges forward despite further analyst downgrades and a history of underperforming earnings.
- GameStop and AMC welcome some new faces to the meme stock movement.
NYSE:GME has certainly built up expectations as the company heads into its quarterly earnings call and annual general shareholders meeting on Wednesday. Shares of the video game retailer extended the recent run by adding 7.14% to close Tuesday’s whipsaw session at $300.00 on the dot. Shares continued to rise in after hours trading, which has become a common theme throughout the recent short squeeze. What can investors expect from the much anticipated earnings call tomorrow? Ryan Cohen’s first official meeting as Chairman of the Board could go a long way in how the rest of this short squeeze plays out.
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For those looking at Wednesday’s call as a bullish signal, they may be disappointed to hear that GameStop has actually tumbled the day after 9 of its last 10 earnings calls, by an average of 14.2%. Will this trend continue on Thursday? To be fair, GameStop is on the precipice of a complete digital transformation so comparing its current state with years past may not be the best analysis. If you ask analysts at Wedbush, they will tell you not to expect much, as the firm reiterated its underperform rating with a $39 price target for the stock. That represents a 770% decline from its closing price on Tuesday.
Some new faces popped up on Tuesday as WallStreetBets spread the short squeeze love around the markets. Clover Health (NASDAQ:CLOV) gained 85.82%, fast food restaurant chain Wendy’s (NASDAQ:WEN) added 25.85%, and AST Spacemobile (NASDAQ:ASTS) rocketed up 51.37%. This could be a change in strategy for Redditors, after major banks in the U.S. announced they would be limiting options and short activity on stocks like GameStop, AMC, and Microvision.
