GameStop (GME) shares are gaining this morning in the buildup to the company’s fourth-quarter earnings release on March 25.
GME is also trending this morning also because there have been rumors on X that Sultan Almaadeed, a tech investor from Qatar, is considering a team up with the gaming retailer.
Investors are hoping that GameStop will offer more color on that front during its earnings call, potentially announcing Almaadeed’s investment into the company.
What to Expect from GameStop’s Q4 Earnings
Wall Street expects GME to report its third consecutive profitable quarter on March 25. Estimates are for the retailer to earn $0.09 cents a share on $1.48 billion in revenue in its Q4.
That would mean a significant decline compared to 22 cents a share and $1.79 billion in revenue that GameStop reported for the same quarter last year.
However, speculation suggests that the company’s chief executive has already had a meeting with Sultan Almaadeed in Qatar.
If GameStop does indeed announce the Almaadeed partnership this coming Tuesday, investors’ focus may shift from the year-over-year decline in its financials, leading to a further increase in GME share price following the earnings release.
Despite recent gains, GameStop stock is currently down about 62.5% versus its 52-week high.
Is GME Considering Investing in Bitcoin?
On earnings day, investors may also want to find out if GameStop plans on using the roughly $4.5 billion that it currently has in cash to diversify its business.
Last month, CEO Ryan Cohen posted a picture with Michael Saylor, the executive chairman of MicroStrategy (MSTR), fueling speculation that GME is considering investing in Bitcoin (BTCUSD) in hopes of replicating MSTR’s success.
On March 25, investors will be looking for updates on those rumors. Any potential hint at plans of gaining exposure to BTC could help GameStop stock extend its recent gains following the earnings release.
Should You Invest in GameStop Stock Before March 25?
GameStop shares remain volatile and are a speculative investment at best ahead of the retail firm’s earnings on March 25.
However, with expectations of a staggering 125% earnings growth in the current quarter, GME could appeal to investors with a high risk appetite in 2025.
