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Yahoo Finance's Ines Ferre breaks down what to expect from meme stock Gamestop ahead of the company reporting earnings after the bell on Wednesday.
- And another stock that doesn't have a buy from Wall Street analysts being GameStop. That's down almost 2% ahead of its earnings, which it will announce today after the close. So I have a write up on Yahoo Finance.
A loss per share of $0.67 is what the Street's expecting, with revenue of $1.2 billion. And a lot of attention will be paid on to what management says about the turnaround strategy or what it doesn't say, actually. Wedbush analyst Michael Pachter, he's one of the few analysts that are covering this stock. He has a price target of $50 a share on it and under-perform rating.
I spoke with him on the phone last night, and he told me he does not think that we will get any details from Ryan Cohen, this is the activist investor, which became chairman of the board, in June. He doesn't think that he actually does have a brilliant plan because if he did, he would have said it months and months ago. Of course, that's Pachter's own opinion there.
But nevertheless, quite an interesting conversation with him. He does have an under-perform rating on the stock. I will say that Jefferies has a hold rating on the stock at a $190 price target on it, with the analysts there upping her price target back in June. So interesting different ratings and different price targets on this stock.
- Ines, you can't have a whole rating on GameStop. You have to go buy or sell. What was Pachter's price target? He has a $6 price target on GameStop?
- No, he has a $50 price target on GameStop, so he's saying that basically we haven't gotten any details about the turnaround plan. He doesn't think that there is such a brilliant turnaround plan because he said if there was, then Cohen would have said it months and months ago. So we've been waiting for this turnaround plan, and apparently the people that know it are the people on the board, the people inside the company.
But he says we still don't have details on it, and he said Cohen did a great job with Chewy. He was co-founder of Chewy. So he did a great job there, but does that mean that he's going to do a great job here?
He says people have to basically decipher his tweets. I mean, this is the kind of scenario that we're talking about, where Jared put it earlier saying that it's a black box. That's basically what Pachter is saying as well, that we still don't have details on this turnaround.
- Yeah, tough year for Pachter Should be noted, GameStop shares $194, Michael Pachter. Yeah, $50 price target. Ines Ferré, great reporting. We'll check back with you later.