Video game retailer GameStop (GME) is scheduled to announce its results for the fourth quarter of Fiscal 2024 after the market closes on Tuesday, March 25. Wall Street expects the company’s Q4 FY24 earnings and revenue to decline year over year, reflecting persistent weakness in the company’s core business as consumers continue to shift from brick-and-mortar retailers to online players offering digital downloads and game streaming.
In particular, analysts expect GameStop’s Q4 FY24 adjusted earnings per share (EPS) to fall about 64% year over year to $0.08. Also, revenue is estimated to decline about 18% to $1.48 billion, reflecting weakness in the company’s hardware and software sales.
Uncertainty Continues to Weigh on GME Stock
GameStop stock has declined 21% so far in 2025 but has still risen 81% over the past year. The company has received no analyst ratings over the past three months, as Wall Street experts contend that the movement in GME stock over recent years has been due to its meme stock status and not backed by fundamentals. Overall, uncertainty about GameStop’s future persists, given the weakness across all key segments.
Coming to the upcoming earnings, Investors will be keen to see if GameStop is making any improvement with regard to its sales and profitability. Additionally, they will look for clarity from management on the speculation about GameStop considering investing in Bitcoin (BTC-USD). In fact, Strive Asset Management urged GameStop’s CEO Ryan Cohen to use the company’s nearly $5 billion cash reserves to invest in Bitcoin.
Meanwhile, TipRanks’ Website Traffic Tool indicates that visits to gamestop.com declined by 25.2% on a year-over-year basis in Q4 2024, which doesn’t bode well for the quarter’s revenue. On the positive side, visits to GameStop’s website jumped about 41% on a sequential basis in Q4 2024.
Options Traders Anticipate Major Move on GameStop’s Q4 Earnings
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting about a 12% move in either direction in GME stock in reaction to Q4 FY24 results.
Is GME Stock a Buy, Sell, or Hold?
GameStop’s meme stock status and weak financials have kept Wall Street analysts away from this speculative bet. The most recent rating on GME stock was a Sell recommendation by Wedbush analyst Michael Pachter on December 11. Given the uncertainty involved and the speculative nature of the stock, TipRanks’ contributor Bernard Zambonin thinks that it is better for risk-averse investors to avoid buying GME stock for the time being.
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