Weekly Equities Outlook: GameStop, Adobe, Associated British Food

GameStop Q2 earnings preview

GameStop is due to release Q2 earnings after the market close in the US on Tuesday, September 9. The stock, which had attracted significant attention as a meme stock, is forecast to report EPS of $0.19 on revenue of $900 million. This is down from previous quarters amid ongoing pressure on GameStop as it deals with structural issues in the retail space.

The meme stock trades down 28% year to date, with weakness in the core business and other firm-specific risks. These include concerns over the strategy to grow into digital assets and other revenue streams. GameStop is also pivoting towards Bitcoin in an attempt to copy the success of Strategy, which is also adding to unease among investors. The market will be looking to see whether the firm can maintain profitability as it shifts away from physical game sales to digital alternatives.

The stock is known for its volatility, and recent history suggests the earnings could prompt another sharp move.

How to trade GME earnings?

After falling sharply in June following a $1.75 billion note offering, the price has traded in a holding pattern, capped on the upside by 24.25 and limited on the downside by 22.00. This setup lends itself to a breakout trade.

Buyers will look to rise above 24.25 to create a higher high and expose the 200 SMA at 26. Above here, buyers could gain momentum.

Sellers will need to take out 22.00 to extend losses to 20.75, the 2025 low. Below here 19.0,0 the August 2024 low comes into focus.

Adobe Q3 earnings forecast preview

The software company Adobe is due to release Q3 2025 earnings on September 11, with expectations for EPS of $5.18, up 11.4% from a year ago, on revenue of $5.91 billion, up 9% from a year earlier.

Earnings come as the stock is underperforming the broader market with a 22% decline in its share price year to date. This has been due to increased competition from AI-driven platforms and amid slow progress in monetizing its new tools. That said, some analysts are hopeful, citing steady demand for Adobe’s creative tools and potential growth from new products.

How to trade ADBE’s earnings?

Adobe trades within a falling triangle pattern, below its falling trendline dating back to the start of the year and below its 200 and 50 SMA. The level 332, the 2025 low, has offered support.

Sellers will look to break below 332 to extend losses towards 275, the 2022 low.

Buyers would need to rise above 365, the falling trendline resistance, and the 50 SMA to bring 376, the late July high, into play. Above here 420 comes into focus, the June high.

Associated British Foods full-year trading statement

ABF is due to release a trading update on Wednesday ahead of full-year results in early November. A modest improvement in profits is expected from Primark and the Ingredients division, while Grocery and Agriculture are set to post lower earnings. The share price is up 7% year to date but has fallen 12% across the past 12 months.

The Sugar division, which accounts for around 11% of group sales, faces challenges amid lower European sugar prices and the loss of its UK bio ethanol business. This has already contributed to falling groupwide adjusted operating profit down to £835 million. A combination of low sugar prices in Europe, combined with U.S. trade tariffs, could push the sugar business into an annual loss of £40 million.

 Primark, however, is a standout performer, accounting for half of all revenue growth. Primark has continued to generate solid sales in Europe and the US, but consumer caution pushed sales 4% lower in the UK and Ireland in the first half. Investors will be looking for reassurance that Primark’s operating margin outlook hasn’t deteriorated and that it remains on track to deliver low single-digit sales growth for the full year.

How to trade ABF's full-year trading statement?

ABF share price has trended higher across the year, trading above its rising trendline and the 50 SMA. The price reached a 2015 high of 2346 in August before easing lower and finding support of the 50 SMA. The uptrend remains intact for now, although momentum has slowed.

Buyers will look to extend the recovery back up to 2346 to create a higher high. Sellers need to break below 2160 to create a lower low and expose the 200 SMA at 2040.