GameStop (GME) - Get GameStop Corp. Class A Reportshareholders are anxiously anticipating the next catalyst that will send the stock sharply higher again in June. Lucky for them, June promises to be a rewarding month for GameStop.
Here are three key players that may soon change the tide for GameStop shares.
GameStop Stock''s Next 3 Catalysts
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1.GameStop''''s Q1 Earnings
On June 2, the company will hold its annual shareholder meeting. GameStop is scheduled to reveal its first-quarter (Q1) results a few days later, on June 7.
While many GameStop shareholders don''t consider the company''s financial results as their primary interest in the stock, earning reports are often a stock mover.
GME shares remained unchanged in the days following the earnings announcement, even though Gamestop reported disappointing results. It''s worth remembering that, at the same time, GameStop''s chairman and largest shareholder, Ryan Cohen, purchased 100,000 shares.
GameStop will have to disclose a loss per share greater than $1.22 per share in order to match market expectations. Despite the market''s predictions, roughly $1.32 billion is anticipated. It''s likely that macroeconomic effects such as high inflation, supply-chain constraints, and inventory management will continue to defy GameStop''s business.
GameStop has failed to provide financial guidance during earnings calls since Ryan Cohen was appointed chairman. This is a standard Cohen strategy, which he believes is unquestionably helpful to Wall Street experts and undermines shareholder sentiment.
GameStop may give an earnings boost if not in this quarter, eventually in a future quarter, depending on its modest consensus for Q1.
2.GameStop''''s NFT Marketplace
GameStop has been ecstatic about expanding from launching a nonfungible token (NFT) marketplace and other blockchain projects to developing web 3.0.
Let''s dive deeper into the first step. GameStop will soon open a NFT marketplace, confirmed during the earnings call last quarter. All backend work will be provided by its partner, Immutable X. Users will be able to trade in-game assets, such as items from Fortnite, via blockchain tokens on the Ethereum platform.
In the first quarter of this year, immutable X announced data on its NFT transactions. This should help many GameStop shareholders get an idea:
GameStop has stated that it will begin its NFT marketplace by the end of the second quarter of this year, and that it will arrive in July.
3.The GME Stock Split
In June, GameStop shareholders will vote on the proposed stock split of GameStop shares.
Although the ratio of the split has not been disclosed, GameStop is considering boosting its stock market. Theoretically, a stock split does not add any value to a company. However, major implications can be seen in the options market, making them more accessible to retail traders the major players behind GME''s high trading volume.
A similar near-term OTM call may sell for only $253 in a near-term, slightly out-of-the-money (OTM) GME call option contract strike price, which expires on May 20.
Splits tend to avert investor sentiment and cause short-term rallies, according to Alphabet (GOOGL) and Tesla (TSLA) - Get NVIDIA Corporation Report, and Apple (AAPL) - Get Apple Inc. Reporta few recent examples of equities that have risen following a split.
There is also possibility that the stock split is part of a strategy to conceal another item that will be discussed during the annual shareholder meeting. According to GameStop, the 2022 incentive plan will allow 8 million shares of common stock to be released. This is why it is crucial that the plan be approved in order to continue to attract, retain, and motivate the company''s high-quality management team.
(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report. Aside from the article, affiliate links may be linked. These partnerships do not influence editorial content. Thanks for your support for Wall Street Memes)