Key points:
- GameStop earnings drop today
- Meme stock traders are all eyes
- Bitcoin, Nintendo and broad performance
Will meme stock enthusiasm hit fever pitch? GameStop has a lot to update on and Bitcoin purchases will be a report highlight.
🎮 Big Swings Ahead?
- GameStop stock
GME advanced 2.7% on Monday as the video-game retailer is set to report earnings after the closing bell Tuesday. Wall Street bros (and all you guys) are looking for $0.08 per share on $750 million in revenue — a modest forecast, but one that could trigger fireworks given the stock’s cult following. - Options markets are pricing in an 11% move in either direction post-earnings, suggesting traders are bracing for volatility and possibly a meme-driven rally (or meltdown).
- Since late March, the Reddit traders’ darling has climbed 43%, riding a fresh wave of enthusiasm despite mixed results last quarter. Now, meme-loving markets are betting this report could inject more momentum.
🎁 A Meme Power-Up?
- In a headline-making move, GameStop recently scooped up 4,710 Bitcoins at a cost of $512.6 million, adding some serious crypto flavor to Tuesday’s report.
- The move mirrors MicroStrategy’s famous bet-the-farm-and-then-some strategy around Bitcoin, and it could win over crypto enthusiasts and meme stock die-hards alike — especially as Bitcoin
BTCUSD trades near record highs. - But it’s a risky pivot too. While Bitcoin’s price surge could juice the company’s assets, it also adds volatility and raises questions about GameStop’s long-term business focus.
🕹️ Switch Up — Nintendo Console Sales
- A quiet catalyst heading into the earnings call: the launch of the Nintendo Switch 2, which hit shelves earlier this month to strong demand.
- As a top distributor of consoles and games, GameStop stands to benefit from early momentum in Nintendo’s new sales cycle, potentially lifting revenue in this and coming quarters.
- Investors will be watching for early commentary on sales impact, inventory plans, and consumer trends, especially with summer season planning already underway (think: gaming during the summer vacation).
