GameStop (GME) Volume Cools Into Earnings – What To Expect

All eyes are on GameStop Corp. (NYSE: GME) today as the company prepares to release its first-quarter fiscal 2025 earnings report after the market closes.

The announcement arrives at a pivotal moment for the video game retailer, which has been navigating a complex transformation strategy while grappling with volatile market sentiment. With the stock currently trading at $30.34, on a solid 2.57% gain in Monday's session, markets are eager to see if GameStop can deliver on its promises and reignite sustainable growth.

The consensus among analysts is that GameStop will report earnings of $0.08 per share on sales of approximately $754 million. This represents a marked improvement compared to the same quarter last year, when the company posted a loss of $0.12 per share on revenues of $882 million.

The year-over-year revenue decline of 14.47% in revenue underscores the ongoing challenges GameStop faces as it attempts to pivot away from its traditional brick-and-mortar model. However, continued profitability rolling over from previous quarters, even at a modest level, is being viewed as a positive sign.

One of the key elements of GameStop's transformation has been its foray into the world of cryptocurrency, specifically Bitcoin.

While the company revealed that it purchased 4,710 bitcoin last week, the move raised some questions from Wedbush over valuations relative to similar names. Now being compared to Strategy, GME trades ~2.4x cash value, whilst MSTR trades at 1.75x BTC holdings. Wedbush analysts, already bearish on GME with a $13.50 price target called the valuation disparity “baffling”, with GameStop's holdings only 1% that of Strategy's at the current time.

Valuations have come into question many times in the past when related to GameStop, but that has not slowed bulls before. The move into bitcoin has been interpreted by some as an attempt to diversify its asset base and attract a new generation of investors, which could help support the company through this transition. The success of this strategy hinges on GameStop's ability to effectively manage its digital assets and integrate them into its broader business operations.

From a technical perspective, GameStop's stock has been trading within a prolonged consolidation range, indicating a period of consolidation, or indecision in markets.

While near-term momentum appears to be improving, with the daily relative strength index (RSI) finding support above its midline, the stock faces immediate resistance at the $30.66 level where it started 2025. A more significant hurdle awaits near the upper boundary of the range at $35.

Much of the hype may have faded away, to the delight of some permabulls no doubt, yet the company remains a focal point for many. Yesterday's trading volume of 5.5million shares was significantly below the recent ADV of 12.34million, as markets likely wait in anticipation for today's print. Implied volatility points to a move of ~11% on the report, not for the faint of heart.