Gaming the System: How GameStop Stock Surged 1,500% In Nine Months - Slashdot An anonymous reader quotes a report from Ars Technica: Nine months ago, GameStop stock bottomed out at $2.80 a share, a reflection of the myriad problems facing the retailer specifically and brick-and-mortar game retail as a whole.
Full Answer
Could GameStop stock drop to $10 a share?
Analyst consensus suggests GameStop could settle at a price of around $10 a share based on the fundamental health of the business. "There's nothing wrong with GameStop," said Pachter, who has a target price of $16 for GameStop stock. "I'm absolutely convinced they're going to thrive and survive.
Is GameStop's long-term health better than last year's stock doldrums suggest?
But beyond the sky-high valuations of recent weeks, analysts also suggest there's some reason to believe GameStop's long-term health is more robust than last year's stock doldrums suggest.
What is GameStop's most valuable asset?
"GameStop’s most valuable asset is their database of tens of millions of PowerUp Rewards members that no other competitor has the ability to replicate. GameStop will be able to leverage this data to become a fierce e-commerce competitor over time and has many unexplored avenues to monetize the data."
How can GameStop build a successful e-commerce platform?
"If GameStop takes practical steps to cut its excessive real estate costs and hire the right talent, it will have the resources to begin building a powerful e-commerce platform that provides competitive pricing, broad gaming selection, fast shipping, and a truly high-touch experience that excites and delights customers."
How is GameStop stock still so high?
The Ape Buzz Continues Since GameStop investors kicked off the meme stock frenzy in early 2021, share prices have remained sky high. That's because the GameStop "apes" — as members of meme stocks' cult-like followings are called — are stubbornly holding onto the stock.
How overvalued is GameStop stock?
GameStop's stock is substantially overvalued at current trading levels based on any reasonable assessment of business value. There have been many successful miracle turnarounds in U.S. corporate history, but to base your investment premise on a hope and a prayer does not seem prudent at this time.
Why is GameStop price rising?
On December 30, 2020, the price was valued at 18.84 U.S. dollars per share. The cause of this dramatic increase is a concerted effort via social media to raise the value of the company's stock, intended to negatively affect professional investors planning to 'short sell' GameStop shares.
How much money GameStop made?
But individual investors piled into GameStop anyway in the beginning of 2021. That pushed the stock higher and prompted large investors betting against it to cover their losses. And made the company worth more than $13 billion, which is more than about a quarter of the companies in the S&P 500.
Is GameStop a good buy?
Gamestop (GME) stock is likely to decline after the current overheated rally. The stock can still be profitable in the long term if revenue growth stays consistent. But investors should avoid buying GME stock due to the high short-term risk.
Should I sell GameStop stock now?
There are currently 2 sell ratings for the stock. The consensus among Wall Street analysts is that investors should "sell" GameStop stock.
What is GameStop worth right now?
How much a company is worth is typically represented by its market capitalization, or the current stock price multiplied by the number of shares outstanding. GameStop net worth as of May 27, 2022 is $10.47B. GameStop Corp.
Why did GameStop stock jump?
Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further.
Who owns GameStop?
GameStop chairman Ryan Cohen just bought another 100,000 shares of the video game retailer, bringing his ownership to 11.9% as the activist investor tries to push the company into e-commerce. The meme stock jumped more than 14% Wednesday, bringing its week-to-date gains to over 55%.
Who got rich on GameStop?
One veteran who said he made millions on GameStop was Bill Gross, the retired “bond king” and former star manager at California money management giant Pacific Investment Management Co.
What to invest $1000 in right now?
7 best stocks to buy with $1,000:Microsoft Corp. (MSFT)Alphabet Inc. (GOOG, GOOGL)Amazon.com Inc. (AMZN)Berkshire Hathaway Inc. (BRK.A, BRK.B)Meta Platforms Inc. (META)JPMorgan Chase & Co. (JPM)Bank of America Corp. (BAC)
Who got rich off stocks?
Certain billionaires made their fortunes in the stock market. The list includes John Paulson, Warren Buffett, James Simons, Ray Dalio, Carl Icahn, and Dan Loeb. Buffett is by far the richest person of these six famous investors, with a net worth of $116 billion.