GameStop (GME) shares ended lower on Wednesday after the gaming merchandise retailer said it will announce its second-quarter financial results on Sept. 9.
The company based out of Grapevine, Texas is expected to record $0.19 a share of earnings for its fiscal Q2, up massively from $0.01 per share only in the same quarter last year.
GameStop stock soared to a YTD high of about $35 in May after announcing a Bitcoin (BTCUSD) treasury strategy, but has since surrendered those gains amid growing investor skepticism over its crypto pivot.
While profitability has started showing signs of recovery, thanks to aggressive cost cuts, revenue growth remains a challenge for GameStop amid the industry’s shift to digital distribution.
The retailer’s volatile history directs traders to brace for a sharp post-earnings move in GME stock. Barchart data suggests a potential trading range of $16.90 to $28.63 heading into 2026. Plus, its average post-earnings move over the past four quarters has been 9.13%.
The wide spread reflects polarized sentiment around the GameStop transformation strategy, including its crypto treasury pivot and leaner operating model.
If the company’s Q2 financials beat expectations, GameStop shares could push higher. However, a miss could trigger a sharp selloff as well.
Investors should consider steering clear of GME shares heading into the video game retailer’s Q2 earnings on Sept. 9.
GameStop currently has a rather elevated short interest of 16.62%, which reflects bearish sentiment among institutional investors, while retail traders have also shifted to other meme stocks in recent months.
In June, the NYSE-listed firm tumbled over 5% after reporting weaker-than-expected revenue for its fiscal Q1, indicating persistent operational challenges.
Technical indicators paint a troubling picture as well, with GameStop stock trading below its 100-day and 200-day moving averages, reinforcing entrenched bearish trends. Plus, lackluster trading volume of 1.9 million shares also points to waning interest.
While GameStop shares do not receive broad coverage from Wall Street firms, the only two that do cover them rate GME at “Moderate Sell.”