Everything You Need To Know Ahead Of Earnings

GameStop Corps stock had its best day in more than three months Monday ahead of its quarterly earnings report.

The stock closed up 88%, to $14.85, its highest close since Aug. 29. The gains came on heavy volume, with more than 141 million shares trading hands, compared with an average of about 28 million shares per day over the past three months.

The rally was likely fueled by a combination of factors, including short covering and anticipation of a strong earnings report. GameStop is expected to report a loss per share of $0.42 in the quarter, according to analysts surveyed by FactSet. However, the company has beaten analysts' estimates in each of the past four quarters.

In addition, GameStop has been making a number of positive changes in recent months, including closing unprofitable stores, expanding its e-commerce business, and launching a new loyalty program. These changes are expected to help the company improve its financial performance in the long term.

However, it's important to note that GameStop is still a risky investment. The company faces a number of challenges, including competition from online retailers and the declining popularity of physical media. As a result, investors should be cautious about investing in GameStop, especially at its current high valuation.

That said, the recent rally in GameStop's stock suggests that investors are optimistic about the company's future. If GameStop can continue to execute on its turnaround plan, it could be a rewarding investment for patient investors.