TLDR
- GameStop (GME) reports Q1 2025 earnings Monday, June 10th after market close with analysts expecting $0.08 per share earnings and $750-761 million revenue
- CEO Ryan Cohen purchased 500,000 shares for $10.8 million while other insiders made mixed trades over the past 6 months
- Major institutional investors showed mixed activity with Susquehanna adding 3.6 million shares while Jane Street removed 2.2 million shares
- GameStop invested $513 million in 4,710 Bitcoins in late May, marking its first crypto purchase since announcing plans in March
- Options traders expect an 11% price move in either direction following the earnings announcement
GameStop is scheduled to report first quarter 2025 earnings on Monday, June 10th after market close. Wall Street analysts expect the video game retailer to post earnings of $0.08 per share on revenue between $750-761 million.
The stock has climbed 32% over the past three months. This recent rally comes as the company made its first Bitcoin investment and meme stock enthusiasm returned to the market.
Revenue expectations show a decline from the previous year. Analysts forecast a 15% drop compared to the same quarter in 2024.
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GameStop’s last quarter delivered a positive earnings surprise. The company reported $0.30 per share in Q4, beating the $0.08 Wall Street estimate by a wide margin.
However, revenue trends remain challenging for the retailer. Q4 revenue fell 28.5% year-over-year to $1.28 billion, missing analyst expectations of $1.48 billion.
Full-year 2024 results showed mixed performance. The company posted a profit of $131.3 million, up sharply from just $6.7 million the previous year due to cost-cutting measures.
Bitcoin Investment Strategy
GameStop made headlines in late May with a Bitcoin purchase. The company acquired 4,710 Bitcoins valued at $513 million, following a strategy similar to MicroStrategy’s approach.
This marked GameStop’s first crypto investment since announcing plans to enter the digital asset space in March. The timing comes as Bitcoin has gained momentum across corporate balance sheets.
The investment represents part of GameStop’s broader digital transformation efforts. Management has been working to diversify beyond traditional video game retail operations.
Insider and Institutional Activity
CEO Ryan Cohen showed confidence in the stock with a large purchase. He bought 500,000 shares for an estimated $10.8 million over the past six months.
Other insider activity was mixed during this period. Seven total trades occurred, with three purchases and four sales among company executives.
Institutional investors took different approaches to GameStop shares. A total of 184 firms added positions while 158 decreased their holdings in Q1.
Susquehanna International Group made the largest addition. The firm added 3.6 million shares, increasing their position by 115.9% for an estimated $80.8 million.
Alyeska Investment Group also made a substantial addition. They increased their stake by 2.4 million shares, representing a 895.4% increase worth approximately $53 million.
Options traders are pricing in volatility around the earnings announcement. The expected move stands at 11.05% in either direction based on options activity.
Wall Street coverage remains limited for GameStop. Many analysts have stepped back from covering the stock due to its unpredictable trading patterns and meme stock status.
Wedbush maintains one of the few active ratings on the stock. Analyst Michael Pachter holds a Sell rating with a $13.50 price target, suggesting 54% downside potential.
The lack of buy ratings reflects ongoing concerns about the company’s core business. Traditional video game hardware and software segments continue showing weakness.
Revenue from hardware and accessories has trended downward in recent quarters. This core segment faces pressure from digital downloads and changing consumer preferences.
GameStop’s Q1 earnings call will provide updates on digital strategy progress. Investors will watch for commentary on retail trends and the Bitcoin investment rationale.
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