Even Bulls Should Avoid GameStop During Earnings Season
No stock goes up forever, and for GameStop (NYSE: GME) investors, that "to the moon" mindset seems to come under attack by a meteor shower one day every quarter. The leading video game retailer has fallen sharply the day after it posts fresh financial results in 9 of the past 10 quarters.
It's not pretty, and it's not even close. The stock has averaged a decline of 14.2% the day after reporting earnings over the last 10 reports. Past underperformance is no indication of future results, but it's worth pointing out that GameStop will step up on the quarterly stage again shortly after Wednesday's market close. History hasn't been kind to those holding the stock on Thursday.
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Source Fool.com
