With that in mind, if you still believe GameStop stock is a tradeable asset, looking at technical metrics makes more sense. With the stock price high, many people will feel like that gamble has paid off. And that, in turn, is having a real-world effect on the share price right now.
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- While this would certainly be bad news for any retailer, as it would mark the sixth consecutive quarter of sales losses—and double-digit declines at that—it’s important to keep the broader context in mind.
- This one-word entry was enough to further send GameStop’s price soaring.
- The screen then flashes to black with a date, March 25th, suggesting a launch or announcement next week.
- In a note to clients, Goldman chief U.S. equity strategist David Kostin said there are still stocks with heavy bets built up against them from Wall Street investors who bet on stock’s decline by selling shares they don’t own.
Cohen later became the chairman of GameStop in June 2021 and was announced as the CEO in September 2023. While the reason for the move is unknown and could just be a strategic decision for Cohen’s personal financials, the move comes as GameStop has over $4 billion in cash and has been quiet on what it will be using the cash for. The transfer also takes the ownership from a Delaware place of organization to Canada, moving the shares to a new country. After all, the #1 stock is the cream of the crop, even when markets crash. Those interested in speculating should treat a Dogecoin purchase as they would any other high-risk investment – never putting more in than they can afford to lose. With that said, celebrity backers or no celebrity backers, Dogecoin is a very risky investment.
One widely discussed theory on social media is that GameStop may be considering a merger or acquisition involving a company tied to RC Ventures, potentially explaining the share movement. Possible reasons for the move shared on social media include using the shares as collateral, taking GameStop private, making mergers and acquisitions easier with one less corporate layer or for tax strategy. GameStop Corporation GME stock could be back in the spotlight with social media spotting a move made by CEO Ryan Cohen, which comes as the company has been quiet about what it’s doing with its large cash balance. Under Cohen’s leadership, GameStop has focused on cutting costs and streamlining operations to ensure the business is profitable even though it is not growing. As of Nov. 2, the company had amassed a $4.6 billion cash pile and has been using those funds for investments, according to a December securities filing. The company is still in the process of figuring out if this makes sense for GameStop’s business, according to one source.
The Next GameStop? 15 Stocks With High Short Interest
He has written for The Wall Street Journal, Bloomberg, Consumer Reports, Senior Executive and Boston magazine, and his stories have appeared in the New York Daily News, the San Jose Mercury News and Investor’s Business Daily, among other publications. As a senior writer at AOL’s DailyFinance, Dan reported market news from the floor of the New York Stock Exchange and hosted a weekly video segment on equities. Believing GameStop overpriced, hedge funds had “shorted” the company, betting the share price would fall.
If you’re sure the company will lose value, you’d make a profit when you buy them back and the price has fallen. The sort of thing you’d find between a doughnut shop and a makeup retailer in an American mall. On the date of publication, Dmytro Spilka did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
GameStop: I Expect Q4 Earnings To Disappoint Due To Industry Declines
Instead, it took until March 7 for the firm to retroactively announce in its annual report that its share count had risen over five-fold. GameStop rose by nearly three-quarters in a single session after one of the biggest boosters of the first meme-stock frenzy returned to the internet trenches following a multi-year absence. Apparently, a cryptic post on X by Keith Gill, aka “Roaring Kitty,” was all it took to once again set off squeezes in some heavily shorted names. After 33 years in the biz, the iconic publication Game Informer closed its doors last August with all of its staff laid off in the process. But now, eight months on, it seems that a comeback may be on the cards.
- It wasn’t particularly successful; the firm averaged a $9.4 million loss per year and required a steady stream of stock and debt issuances to fill the gap.
- Some retail traders in search of the next GameStop stock set their sights on silver.
- However, there are big expectations around whether CEO and major shareholder Ryan Cohen will use some of the company’s $4.5 billion cash horde to implement a turnaround story and reignite revenue growth.
Troika Media: Reddit’s Next GameStop?
But huge numbers of people in the wallstreetbets Reddit forum swapped tips and bought shares in GameStop. GameStop was one of the companies that loads of hedge funds (companies who do these bets) had bet on to lose a lot of value. Calling Spirit Airlines “the people’s airline,” Portnoy has helped to generate significant positive sentiment towards the stock, citing how the company has often avoided the PR disasters of other budget airlines in recent years. Get a brief on the top business stories of the week, plus CEO interviews, market updates, tech and money news that matters to you. On the other hand, GameStop has been relatively clear about its finances and business outlook. The company has kept top-tier auditor Deloitte & Touche since 2013 and frequently updates shareholders in its detailed earnings calls.
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Big names like Tesla’s Elon Musk, Kiss’s Gene Simmons, and Rapper Snoop Dogg have promoted Dogecoin through social media, predicting that it is well on its way to a value of $1. The strategy was similar to the one behind GameStop – silver-related assets had been shorted by professional investors. Another group – led by Tesla’s Elon Musk – was confident that the cryptocurrency Dogecoin would be next to deliver exceptional returns. This is a massively simplified explanation of something called shorting, or short selling – words you might’ve seen cropping up in your feeds in the last few days.
They borrow shares in the company and sell them, with a promise to buy them back at a later date. free forex signals People who buy and sell stocks often bet on which companies won’t do well in the future. If you’re not on Reddit, it’s a social media site – kind of like Twitter or Facebook. You’ve probably stared blankly at your WhatsApp chat as the words “GameStop”, “Reddit” and “stock market” get thrown around the way “pub” and “meet at 8” used to. Although the bungled acquisition attempt saw Spirit shed around 50% of its market value, the stock found a vocal supporter in Barstool Sports founder and owner Dave Portnoy.
The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Tom Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad. On the date of publication, Tom Yeung did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Whether external factors like a prospective cryptocurrency bull market provide more retail investors with the confidence and liquidity to once again embrace meme stocks like 2021 remains to be seen. However, it’s certainly worth tracking these strong meme prospects that hold plenty of potential to pop in the year ahead. From a trading perspective, Troika Media had around 21 million shares sold short at the end of February, a 72% short interest ratio.
The most recent speculation was sparked by a photo of Ryan Cohen with MicroStrategy (MSTR) CEO Michael Saylor, which some saw as a hint that GameStop might be exploring the Bitcoin (BTC) space. A few days later, GameStop confirmed via X that it had received a letter from Strive Asset Management urging the company to adopt Bitcoin as a reserve asset. The stock has been on a roller-coaster ride instaforex review for the past five years, reaching highs around $70 before collapsing and dropping to lows under $20 per share several times. All in all, GME stock is up 2,119% since 2020, demonstrating just how much potential it has always had. “My sense is hedge funds are like, ‘Oh, they’re going to get excited again, maybe we can ride the thing up’.
I remember the pages where they featured fanart of video game characters the most. In other words, if GameStop’s business stays on its current trajectory over the next five years, using reasonable assumptions, the implied share price would be no higher than around $13.50—roughly 80% below its most recent price. Using a reverse discounted cash flow analysis, GME’s fair market value is even more troubling than at first glance.
GameStop’s shares slumped by 40% in 25 minutes on Wednesday, after a few days of frenetic growth. H Acquired Spring Communications, Inc. (“Spring Mobile”), a United States–based Apple wireless retailer. Also in November 2024, GameStop sold GameStop Italy to Cidiverte, a small Italian competitor which operates ten stores under the Gamelife brand. Within six months of the sale, over 250 GameStop stores in Italy will be rebranded as Gamelife stores.182183184 Thus by the summer of 2025, aside from Micromania in France, the GameStop brand will have disappeared from Europe. Here’s a look back at the story so far, with an explanation of stocks, short-selling and what has been happening with GameStop. While it got its start as something of a joke in the fintech community, Dogecoin is gaining legitimacy.
GameStop’s Australian division has been focused on increasing higher-margin merchandise and opening more large format hybrid stores which include both an EB Games and Zing Pop Culture store in a single location. These locations have an expanded selection of merchandise based on both games and pop culture. The Sydney Morning Herald reported the diversification stalled candlestick pattern into merchandise through the establishment of the Zing Pop Culture brand in 2014 had been vital in keeping the company profitable. The newspaper reported the greater focus on merchandise allowed the company to tap into the lucrative, higher-margin merchandise market of t-shirts, figurines and bobbleheads. The newspaper noted former staff agreed that the Australian divisions’ merchandise pivot has been key to the divisions survival in Australia’s tough retail landscape.
Last weekend, CEO Ryan Cohen posted a photo on social media site X with Michael Saylor, co-founder and chairman of MicroStrategy, the largest corporate holder of bitcoin. However, Saylor is not involved in GameStop’s discussion about crypto investments at this time, two of the sources said. While these companies might eventually see gains as a result of a shortage of physical silver, buying these shares doesn’t contribute to the overall “short squeeze” strategy. However, one of the issues with this strategy is that “silver” isn’t a precise term – especially for inexperienced investors. Activity was diluted due in part to the fact that retail investors purchased shares in a wide variety of silver-related assets. Furthermore, the stock already experienced a boost from meme investors as the firm began flying its first commercial passengers into space in June 2023.
With fewer people out shopping due to the pandemic and most games being sold online, things weren’t looking great for the company. “I am pleased that we were able to reach an agreement with one of our investors that will provide increased flexibility and better position us to execute on potential strategic business deals,” said the company’s chief executive, Henrik Fisker. In addition to this, the concept of space tourism is more likely to resonate with retail investors as an exciting uncharted industry that’s unfamiliar territory for institutions with intentions to short the stock. Of course, the biggest performers in future meme stock rallies will be the stocks that inspire investor enthusiasm alongside institutional derision without already being recognized as fully-fledged meme stocks. With this in mind, I believe the three stocks below have the potential to see GameStop’s levels of gains in the right market conditions. I still remember reading some of the magazines around the house, and it was fun.