Shares of GameStop Corp. extended their slide toward a 3 1/2-month low Wednesday, as investors prepared for the videogame retailer’s fiscal second-quarter report due out after the closing bell.
The “meme stock”
GME,
slumped 4.5% in morning trading, and was headed for a sixth straight loss, and 14th loss over the past 15 sessions. It has tumbled 23.9% over the latest losing streak and plunged 43.1% over the past 15 trading days.
GameStop is scheduled to report results for the quarter through July just after 4 p.m. Eastern. Analysts surveyed by FactSet expect the company to report a per-share loss of 42 cents, which would be the sixth consecutive quarterly loss.
The FactSet revenue consensus is $1.27 billion, up 7% from a year ago.
Both the per-share loss and revenue consensus have remain unchanged since the end of June, according to FactSet.
The company has reported a wider-than-expected loss the previous four quarters, even as it has beat revenue expectations the past five quarters. The five-quarter streak of beating revenue estimates followed a nine-quarter streak of misses.
Although GameStop’s stock has rallied the day after the previous two earnings reports, history suggests investors have a reason to anxious.
The day after the previous 20 quarterly reports, the stock has fallen 14 times, by an average of 14.6%, according to a MarketWatch analysis of FactSet data. The six times the stock rose, it gained 4%.
GameStop shares, which were on track for the lowest close since May 24, have declined 20.9% since the company reported first-quarter results after the June 1 closing bell, while fellow meme stocks AMC Entertainment Holdings Inc.
AMC,
has gained 2.3% and Bed Bath & Beyond Inc.
BBBY,
has lost 11.7% over the same time. The S&P 500 index
SPX,
has lost 4% since June 1.
