Both Adobe and GameStop are slated to report earnings after Tuesday’s closing bell.
GameStop’s earnings report is the company’s first since the WallStreetBets Reddit forum successfully got retail traders to buy shares of the stock… sending it to the moon and back just as fast. All told, GME went from an $18 stock back in January before the squeeze, and it was still trading around $200 a couple of hours before Tuesday’s close.
And because our readers follow both of these stocks — especially GameStop Corp. (NYSE: GME) — I thought I’d give you a quick update on what to expect, what some analysts are already saying, and where I think Adobe and Gamestop’s earnings report will send each stock.
Some shareholders think the retailer can live up to its high-flying share price thanks to Ryan Cohen. He’s the co-founder of Chewy, and was just added to GameStop’s board of directors to help reshape the brand.
But I’m not buying it one bit…
Gamestop’s share price was about $200 on Friday. And despite hitting $483 per share in January, that’s 10 times more than the price it was at the beginning of 2021.
Michael Pachter, a Wedbush Securities analyst, said there’s no way GameStop’s earnings report could reflect its roughly $14 billion valuation, and that not one institutional investor would consider going long at $200 a share.
I happen to agree with him.
And as you’ll see in today’s video, GameStop technically hit a peak of about $183 toward the end of January. But since then it’s been backing away and the stock’s price doesn’t reflect anywhere near the price levels we’re seeing.
So while earnings might give the stock’s price a short-term boost, it won’t last. I anticipate GameStop to hit its 50-day moving average and go lower.
But GameStop’s earnings report isn’t the only one to watch this week…
Adobe Inc. (Nasdaq: ADBE) is next on my radar and looking at the stock from a technical basis, it’s up 2.15% right now. So check out my video below to see if you should jump in on the trading action now or wait, and feel free to leave your thoughts in the comments section below.
And as always, don’t forget to subscribe to my YouTube channel if you haven’t already so you can be notified as soon as I post my next video!
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