GameStop Shares Tumble In Premarket As Investors React To Q3 Earnings
Portfolio Pulse from Surbhi Jain
GameStop's (GME) stock fell over 8% in premarket trading after Q3 earnings revealed revenue below analyst expectations. CEO Ryan Cohen is leading efforts to cut costs amidst a shift to online game downloads. The company's board approved a new investment policy for using cash to buy stocks and make other investments. Technical indicators suggest a bearish trend, with the 100-day SMA crossing below the 200-day SMA and RSI nearing overbought territory.
December 07, 2023 | 2:17 pm
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NEGATIVE IMPACT
GameStop's Q3 earnings miss and bearish technical trends are likely to negatively impact GME's stock price in the short term.
The premarket drop of over 8% in GME's stock price is a direct reaction to the Q3 earnings miss, indicating investor disappointment. The bearish technical trends, such as the SMA crossover and RSI level, further support the likelihood of a negative short-term impact on the stock price. The new investment policy may introduce uncertainty about the company's future cash use, potentially adding to investor concerns.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100