GameStop is preparing to release earnings after the bell. While the company has a history of volatile reactions, current conditions—including lower short interest and easing volatility—suggest a more subdued post-earnings response may be in store.

GameStop (GME) is set to report earnings today after the market closes.

The stock has historically exhibited significant volatility around earnings, including notable short squeezes and extreme price swings.

However, it has also experienced more typical, less dramatic post-earnings reactions in certain instances.

Historically, GME’s post-earnings performance has not been strongly correlated with its pre-earnings movement. Recently, post-earnings returns have been slightly negative, reflecting only a marginal increase.

More importantly, GME’s price has been highly sensitive to changes in short interest. Interestingly, short sellers are often on the wrong side of the trade. Currently, short interest has declined, which is bearish in this context.

The stock typically moves around 10% following earnings, though it has frequently exceeded that range.

GME has repeatedly entered short squeeze territory.

Short interest recently doubled after the company issued $1.5 billion in convertible bonds through a private placement.

Although volatility has been very high in recent sessions, it is now beginning to decline.

While GameStop has been synonymous with volatility and short squeezes, recent indicators point to a more tempered post-earnings environment. Short interest has decreased, volatility is moderating, and historical patterns show mixed but slightly negative post-earnings performance.

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