An analyst at S3 Partners called GameStop Corp. “still a squeezable stock” after the company reported its second-quarter numbers after the market closed on Tuesday.
Last quarter, after the earnings report, GameStop shares GME 1.38% dropped more than 3%. This was because the company planned to sell more stock and profits were not as good as expected. Surprisingly, [GameStop’s] stock price dropped -3.4% when the earnings report came out, but it rose with a 100% return in the month after the miss, Dusaniwsky wrote in a report that came out Monday.
As longs bought and shorts covered, Dusaniwsky wrote, “it looks like price sentiment is positive on both sides of the market.” “It looks like [GameStop] is ready for a rally if tomorrow’s results are close to or agree with what was said.”
FactSet polled analysts, and they think GameStop will report a loss of 9 cents per share and sales of $896 million. Dusaniwsky says that most people think the company will lose 1 cent per share and make $896 million in sales.
That same expert also said that GameStop has been a “squeezable” stock this year. “GameStop stock has been very easy to short in 2024, with 25.5 million shares, worth $609 million, being bought back during the year, which is a 42% drop in the total number of shares shorted,” he wrote. “This has been the trend for thirty days, with 1.4 million shares bought to cover, worth $33 million. This is a 4% drop in the total number of shares shorted.”
Dusaniwsky said, “[GameStop] is still a squeezable stock right now.” He pointed out that the company has an S3 score of 75/100, but it hit 100/100 several times in the first half of the year as its stock price rose. He wrote that GameStop’s shorts have lost $505 million so far this year, which is 54% of their value. They have also lost $17 million so far this month, which is 2% of their value.
The most recent statistics from the exchange shows that 9.3% of GameStop’s public float of shares are short.
Monday, shares of the video game store and original meme stock are up 1.2%, which is more than the 0.9% gain in the S&P 500 index (SPX).
When popular trader Keith Gill, also known as Roaring Kitty, came back to social media earlier this year, it was good for GameStop shares and AMC Entertainment Holdings Inc. AMC 0.60% shares as well. Gill played a big role in the meme-stock craze of 2021, which sent shares of GameStop and AMC through the roof.
In 2024, GameStop shares are up 38.1%, while the S&P 500 average has only gone up 14.4%.
