What happened
Shares of GameStop (GME -2.83%) are soaring 11.5% at 11:04 a.m. ET on Tuesday, one day after they cratered 16% and two days before the video game retailer reports its latest quarterly results.
GameStop, of course, has seen its stock all over the place over the past year, and wild swings in value are not uncommon for this meme stock, though the trend has mostly been steadily lower.
Image source: Getty Images.
So what
GameStop is in the first innings of a turnaround plan that as yet remains opaque to investors and the market. Although Chairman Ryan Cohen has talked of the retailer becoming the next "Amazon of gaming," how it will be achieved is still unknown because no details have been released.
There are apparently non-fungible tokens in GameStop's future, and more speculation has centered on that than on how the video game retailer will remain relevant in an industry continuing to move online and become digitally native.
Now what
Whether Cohen reveals any new details after the retailer reports earnings remains to be seen, but the market is very concerned about the possibility of split loyalties after Cohen revealed a large, activist stake in Bed Bath & Beyond. Without word on GameStop fixes, he's already moved on to a new turnaround target.
The market's patience has already seemingly worn thin on seeing some results -- any results! -- with shares down by nearly 50% in 2022. The stock might tumble further if GameStop posts yet another quarter of shrinking sales and no signs of how it will be reversed.
