Why Is GameStop (GME) Stock Up Today?

GameStop (NYSE:GME) stock is on the move Tuesday and we’re diving into what has investors excited about the retail company’s shares today!

A Gamestop video game store in the Herald Square shopping district in New York representing GME stock.

Source: rblfmr / Shutterstock.com

The news that most likely has GME stock on the rise is an upcoming earnings report. GameStop is planning to release results for its fourth quarter and full year of 2021 when markets close on Thursday.

So what can investors expect from that earnings report? Wall Street’s estimates call for the video game retailer to report adjusted earnings per share of 84 cents on revenue of $2.22 billion.

It’s also worth highlighting that GME stock is often the subject of volatility. The company became a meme stock throughout the Covid-19 pandemic with certain traders taking an interest in it to boost up prices of shares.

This resulted in these traders attempting to push out hedge funds shorting the stock. That battle was a cultural moment in stock history and has affected how shares are traded since. The power of people across social media to radically affect a stock’s price and go against hedge funds has been repeated since with other companies.

Keeping that in mind, it makes sense that we’d see GME stock get a boost ahead of its earnings report. It’s already normal for companies to rise or fall before releasing quarterly results. Add in GME’s meme stock status and today’s movement is entirely expected.

GME stock is up 5.6% as of Tuesday morning but is down 45.9% since the start of the year.

Investors seeking out more stock market news for Tuesday are in luck!

We’ve got all the most recent stock stories that traders need to know about today! A few examples include what has AMC Entertainment (NYSE:AMC) stock rising, why Coupa Software (NASDAQ:COUP) stock is slipping, as well as this morning’s biggest pre-market stock movers! We’ve got all of that news at the following links!

More Tuesday Stock Market News

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


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