Can GameStop Stock Start Winning Again?

GameStop (NYSE: GME) continues to be one of this year's biggest gainers. The video game retailer is a nine-bagger in 2021, but it's a different story for investors that bought into the meme stock after its initial pop in late January. The shares are down 63% since the all-time high that was hit on Jan. 28 through Tuesday's close.

Even if you dismiss that spike as a frenzied short squeeze that took the market by surprise, GameStop is still trading 49%, 48%, and 30% below levels it hit in April, June, and November, respectively. Can GameStop rally to new highs when a lot of the variables that sent it skyrocketing earlier this year are no longer in play? With fresh financials just hours away -- GameStop reports shortly after Wednesday's close -- the chain has a chance to impress.

The rub is that history hasn't been on its side over the past three years when it comes to price action after its quarterly updates. GameStop stock has averaged a decline of 11.8% the day after posting financial results over the past dozen quarters. Zoom out and you see a spectacular three-year chart, but earnings season has been rough for GameStop investors. If things play out differently this week the specialty retailer is going to have to try something new.

Source Fool.com