The Reddit meme trades may finally be out of fashion. GameStop (GME) lost 15% on Wednesday after posting troubling results. Although it erased the pre-earnings rally, short sellers are in control again.
The short float on GME stock is 22.36%. The firm reported a 41% decline in software sales in the last two years. When Sony’s (SONY) Playstation and Microsoft’s (MSFT) Xbox get a refresh, physical cartridges will become obsolete. The firm has a low chance of survival in the coming years. Its business prospects diminished when gaming companies started offering purchases as digital downloads.
In the drugstore sector, patient invests may want to sell Walgreens Boots Alliance (WBA) after the earnings report. It will need to close VillageMD stores. Additionally, it needs a cost-reduction guidance that is more than $1 billion. These expense cuts will hurt customer service quality. Expect Walgreens to lose business to CVSHealth (CVS).
Biggest Bullish Movers Today
Among the stocks moving in after-hours trading, RH, a luxury home furnishings retailer, added 7%. It expects strong demand trends throughout this fiscal year.
Sprinklr (CXM) gained nearly 8%. The software supplier posted an adjusted EPS of 13 cents.
Verint Systems (VRNT) added 3% after posting a 12.2% Y/Y rise in revenue, to $265 million. It expects to earn $2.89 a share in its fiscal 2025 year.