thestreet, 10 June 2021
Momentum stocks, which have been dubbed “meme stocks” by mainstream media and Wall Street, have taken the stock market by storm in the last six months.
Earlier this week, stocks such as GameStop (GME) – Get Report and AMC (AMC) – Get Report were seeing positive momentum. Even stocks like Clover (CLOV) – Get Report and Wendy’s (WEN) – Get Report joined them.
However, GameStop’s momentum turned negative in Thursday intraday trading following the company’s earnings report late Wednesday.
The company did name a new CEO and CFO–both are former Amazon executives. Matt Furlong will take over the role of CEO while Mike Recupero will become the CFO. Ryan Cohen, Chewy-co-founder, has officially been voted in as the chairman.
Looking at the earnings, GameStop posted an adjusted loss of 45 cents per share, which beat Wall Street’s estimate for a loss of 84 cents.
Revenues rose 27% to $1.3 billion in comparison to the same quarter a year ago.