GameStop winnings arrive. No one knows what to expect.

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After two months of wild trade,

GameStop

will report on Tuesday on the results of its January quarter. What this means for action is an assumption of anyone.

In a note Thursday, Wedbush analyst Michael Pachter wrote that GameStop is “well positioned to be the main beneficiary of the new console releases.” But he believes stocks are trading at levels disconnected from the fundamentals. While Pachter values ​​the shares in Neutral, it has a target price of $ 16. Shares of GameStop rose 4.6% to $ 211 on Friday.

By now, many Americans already know why. GameStop stocks were widely analyzed by Wall Street analysts, with a drop around the price of a Happy Meal a year ago. It earned an obscene short interest rate, which meant hedge funds were lining up to bet on a price drop. But when short sellers get ahead, positive news can cause stocks to skyrocket as they rush to buy shares to close their bets in the face of an unlimited downside.

In the second half of last year, Chewy co-founder Ryan Cohen joined the mix. He revealed a stake and later called for major changes. He increased his stake in December and joined the board in January with two associates.

Taking advantage of the short interest in stocks and the possibility that GameStop might find a second life as a gaming-focused e-commerce player, retailers on Reddit’s WallStreetBets forum piled on GameStop stocks. The technical peculiarities of the options activity, the brief interest mentioned and the new enthusiasm made GameStop shares grow in January.

WallStreetBets hit the front pages of national newspapers and bearish hedge funds caught fire. He also started a debate on short-term selling, as well as one on retailers ’access to financial markets after Robinhood and other brokers temporarily limited the purchase of shares due to the financial needs of their clearing centers.

GameStop shares retreated around $ 40, but rose again last month. Although GameStop announced the search for a new chief financial officer, some promising e-commerce-focused hires and a board committee chaired by Cohen to guide its transformation into a technology company, it has since provided no updates. about sales or their prospects. its holiday sales launch on January 11, which meant a disappointing December.

During the full fourth fiscal quarter, Wedbush analyst Pachter expects sales of $ 2.3 billion, comparable sales of 4.8% year-on-year and adjusted earnings of $ 1.38 per share. He notes that GameStop’s holiday sales report indicated that sales at the same stores fell year-on-year in December and lagged behind NPD-positive data across the industry. He points out that the company has lost market share in recent periods to competitors amid a shift towards Internet spending.

BofA Global Research analyst Curtis Nagle wrote in a note on Friday that he expects a disappointing, albeit profitable, quarter. He wrote that while recent Cohen-related announcements and new hires are positive, in theory, there have been no real details about the cost, timeline, and impacts on earnings from a replacement plan. It has a price target of $ 10 with a lower rating than the companies, and noted that the current valuation and historical multiple of the shares would imply earnings before interest, taxes, depreciation and amortization of $ 3.5 billion, approximately four times its maximum Ebitda compared to 2015.

Nagle’s note included an analysis of the impact of $ 1,400 direct on stocks, with the idea that retail investors will use their latest developments in GameStop shares. His takeaway is that “stimmies,” as he calls them, won’t affect GameStop’s actions in the future.

Of course, what analysts have said about GameStop shares has not had a big impact on its recent moves. A positive update to the investment plan could frustrate the rest of the bears in the short term. On the other hand, any comments about possible stock sales could be negative. Pachter hoped that short-term sellers would abandon their bets, with the return of stocks to more fundamental levels. That hasn’t happened, he noted.

“Activists control the company’s board and chief activist Ryan Cohen, founder of Chewy, intends to unveil a new strategy soon,” Pachter added. “When the new strategy is revealed and we can evaluate it, we will review our estimates and PT again.”

Write to Connor Smith at [email protected]