Core Viewpoint - GameStop's upcoming third quarter results are pivotal in assessing CEO Ryan Cohen's turnaround strategy, which emphasizes a no-hype, disciplined approach to achieving profitability [1][6]. Group 1: Cohen's Transformation Strategy - Since becoming CEO in September 2023, Cohen has shifted away from the previous media-centric and meme-driven identity of GameStop, focusing instead on cost-cutting, cash preservation, and achieving profitability without grand promises [3][4]. - The strategy involves significant frugality, including closing underperforming stores, reducing workforce, and minimizing operating costs, with a long-term vision of creating a sustainable company [4][6]. Group 2: Market Expectations and Technical Analysis - Analysts expect earnings per share (EPS) of 20 cents on revenue of $987 million, but guidance and commentary may be more critical than the actual numbers [6]. - GameStop's stock is currently showing positive technical indicators, with a price of $23.35 above key moving averages, suggesting a potential bullish trend if it breaks through the 200-day moving average at $24.44 [4][5]. Group 3: Implications of Results - The upcoming earnings report is not about positioning GameStop as a tech giant or reviving its meme-stock status, but rather about validating Cohen's minimalist and disciplined strategy [7]. - If the results indicate improved execution and profitability potential, the lack of hype could lead to a positive market reaction, while disappointing results may raise questions about the effectiveness of the current strategy [6][7].

Core Viewpoint - The article emphasizes the significance of the upcoming earnings season in December for U.S. stocks, highlighting the potential for significant stock price volatility and the effectiveness of options as a tool for investors to amplify returns during this period [1][2]. Earnings Calendar - A detailed schedule of key U.S. companies' earnings releases for December 2025 is provided, including companies like AutoZone, GameStop, Adobe, and Nike, with specific dates and times for earnings announcements [1][2]. Options Strategies - The article outlines five classic options strategies that can be employed during earnings season: - **Buy Call**: A strategy for bullish investors expecting significant price increases [4][6]. - **Bull Call Spread**: A moderate bullish strategy with limited upside potential [7]. - **Buy Put**: A strategy for bearish investors anticipating significant price declines [9]. - **Bear Put Spread**: A moderate bearish strategy with limited downside potential [11]. - **Long Straddle**: A strategy for investors expecting high volatility in either direction [13]. Strategy Details - Each strategy includes specific scenarios for application, initial costs, potential returns, and risk profiles: - **Buy Call**: High potential returns with unlimited upside and maximum loss equal to the premium paid [6]. - **Bull Call Spread**: Limited risk and reward, with a defined maximum profit and loss [7]. - **Buy Put**: Limited maximum profit with a defined risk equal to the premium paid [9]. - **Bear Put Spread**: Similar to the Buy Put but with reduced risk and capped profit [11]. - **Long Straddle**: Captures significant price movements in either direction, with defined risk limited to the total premium paid [13]. Trading Considerations - The article advises investors to focus on the breakeven points of their strategies and to select options with sufficient time until expiration to avoid liquidity issues and time decay [4][6].

The GME stock price has remained in a consolidation phase this year as market participants watched its core businesses, balance sheet, and its Bitcoin accumulation strategy. So, will the GameStop shar... ...

Core Viewpoint - GameStop is set to report its fiscal third-quarter results, with expectations of significant growth in net sales and profitability, despite a history of declining sales over recent years [1][5]. Financial Performance - GameStop's net sales have declined for six of the last seven fiscal years, with fiscal 2021's sales still 7% below fiscal 2019 levels [2]. - The company's net sales are currently 59% below their peak in 2015, but there was a 22% year-over-year increase in the fiscal second quarter [3][6]. - Analysts project net sales of $987.4 million for the fiscal third quarter, representing a 15% increase from the previous year [5]. Profitability - Analysts expect a profit of $0.20 per share for the upcoming quarterly update, which would be more than triple the net income of $0.06 per share from a year earlier [7]. - GameStop has consistently exceeded quarterly profit expectations by 61% or more over the past year, marking the third consecutive year of profitability [7]. Business Model Evolution - The fiscal second quarter saw a 31% increase in hardware sales, largely due to the launch of Nintendo's Switch 2 console, while collectibles surged by 63% [8]. - Software sales, traditionally a high-margin segment, fell by 27% and now account for less than 16% of revenue, impacted by the rise of digital delivery and game streaming services [9][10]. Market Position - GameStop's gross margin has contracted year-over-year, but the bottom line continues to improve, with a current P/E ratio of 23 for projected earnings [10]. - The long-term outlook remains uncertain, but recent positive trends in fundamentals are noteworthy [10].

Earnings Calendar Overview - Retail investors are preparing for earnings reports this week, with notable companies scheduled to release their results [1] - The earnings calendar includes major names such as Toll Brothers, GameStop, Oracle, and Broadcom [1][4][5][9] Company-Specific Insights - **Toll Brothers, Inc. (NYSE:TOL)**: Expected to report Q4 earnings of approximately $4.89 per share on $3.3 billion in revenue, with a focus on luxury demand offsetting housing affordability challenges [2][3] - **GameStop Corp. (NYSE:GME)**: Anticipated to report third-quarter earnings of 20 cents per share and revenue of $987.28 million [4] - **Oracle Corp. (NYSE:ORCL)**: Analysts project earnings of $1.64 per share and revenue of $16.22 billion, with attention on capital expenditures for AI and cloud revenue growth [5][8] - **Broadcom Inc. (NASDAQ:AVGO)**: Expected to report earnings of $1.86 per share on revenue of $17.49 billion [9] Additional Companies Reporting - Other companies reporting include Chewy, Inc. (NYSE:CHWY), Uranium Energy Corp. (AMEX:UEC), Hello Group Inc. (NASDAQ:MOMO), Ciena Corp. (NYSE:CIEN), The Lovesac Co. (NASDAQ:LOVE), and Rent the Runway, Inc. (NASDAQ:RENT) [4][8][10]

Core Insights - The meme-stock phenomenon has significantly changed, with GameStop Corp emerging as the only company with a credible turnaround path, while AMC Entertainment continues to face insurmountable structural issues [1][2]. Financial Performance - AMC has engaged in financial engineering strategies such as dilution, reverse splits, and restructurings to remain operational, resulting in a sharp decline in stock value over the past year [2]. - In contrast, GameStop, under CEO Ryan Cohen, has focused on cost-cutting, operational discipline, and strengthening its balance sheet, moving away from speculative narratives [2][3]. Market Sentiment and Technical Analysis - GameStop's stock is trading around $23, above its key moving averages, with positive MACD and an RSI near 61, indicating accumulation and potential for a trend shift if earnings show stability [4]. - AMC's stock, trading near $2.27, is below all major moving averages, with negative MACD and an RSI around 43, reflecting ongoing distribution and bearish sentiment [5]. Earnings Expectations - GameStop's Q3 earnings expectations are modest, with an anticipated EPS of 20 cents on $987 million in revenue, focusing on demonstrating the effectiveness of Cohen's rebuilding strategy rather than exceeding numbers [6].

Get ahead of the market by subscribing to Seeking Alpha's Wall Street Week Ahead, a preview of key events scheduled for the coming week. The newsletter keeps you informed of the biggest stories set to make headlines, including upcoming IPOs, investor days, earnings reports, and conference presentations. Stock index futures were higher on Friday, as traders looked forward to fresh inflation data in hopes of gauging the Federal Reserve's monetary policy. Wall Street's major averages ended mixed on Thursday, a ...

Core Insights - Michael Burry, known for his early investment in GameStop, recognized the company's undervaluation despite its declining brick-and-mortar business [1] - Burry exited his GameStop position in late 2020, missing the peak of the meme stock phenomenon, and has since made several cryptic comments about the stock [2][5] - GameStop's recent earnings report showed a 22% increase in net sales to $972 million, driven by growth in hardware and collectibles [6] - The company doubled its cash on the balance sheet, although this was accompanied by increased debt, and generated $117 million in operating cash flows [7] Company Performance - GameStop's diluted earnings per share rose to $0.31 from $0.04 year-over-year, indicating improved profitability [6] - The stock trades at approximately 23 times forward earnings and 2.4 times forward sales, suggesting a valuation that may be considered reasonable depending on future performance [7] - Concerns remain regarding management's investment in Bitcoin, which may indicate a lack of strategic direction [8] Investor Sentiment - Retail investors are showing renewed interest in Burry's insights through his Substack, particularly regarding his past involvement with GameStop [3][5] - Burry's upcoming posts on GameStop are anticipated to provide further clarity on his views and potential investment strategies [10]

Core Insights - D1 Capital Partners, led by Dan Sundheim, successfully navigated market turmoil in 2023, achieving a 28% increase in its stock book through November [1][3] - The firm managed to position itself effectively ahead of significant unwinding in the hedge fund industry, learning from the experiences of the GameStop short squeeze in 2021 [2][3] - D1's stock-picking portfolio outperformed many peers, with a 23% increase through August, significantly beating the MSCI World Index [5] Investment Strategy - The firm began the year with its highest-ever net exposure to non-US companies, focusing on long-term potential amid geopolitical tensions and market volatility [3] - D1 avoided losses during the July short squeezes by diversifying its short book and enhancing risk monitoring [4] - The five biggest stock winners for D1 were identified as transformational bets, benefiting from management changes or emerging trends like artificial intelligence [6] Market Outlook - Sundheim expressed optimism about artificial intelligence creating favorable conditions for stock picking, anticipating more short opportunities in the future [7]

The GameStop short squeeze that cost Dan Sundheim’s firm $4 billion in a single month in 2021 left him in a state of shock, so he was prepared when market turmoil in March again spurred hedge funds to unwind bets https://t.co/wXRS4xJxDP ...