Full Answer
Why is GME stock surging?
Boy, how the times have changed. GME stock has surged as retail investor momentum has pushed short-sellers to cover their bets. A high short percentage, combined with a flurry of retail investors buying in tandem, did indeed appear to lead to a short-squeeze in late January.
How high will GME stock go?
How High Will GME Stock Go? So, can GME stock reach $1,000 per share. It’s certainly a possibility given that GameStop’s dark pool trading percentage is rather high, according to Stonk-O-Tracker data. Dark pool trading in GameStop has ranged between 30%-50%.
Is GME stock back in the doldrums?
After all, the stock has been on a major downdraft since its all-time peak of $302.56 on June 9, 2021. So, even though the stock dropped in the summer and rose again in the fall, it’s now back in the doldrums. The market seems to gyrate quite wildly, as if it is not really sure what the underlying value of GME stock really is.
Will GME stock continue to fall in 2021?
Coming into 2021, GME shares had lost a third of their value over the previous five years. Investors betting the stock would fall, the shorts, controlled GME stock shares in late 2019. That overly bearish bet set up a perfect environment for a massive short-squeeze rally.
How much will GME stock go up?
According to predictions from Wallet Investor, the price of GameStop (GME) stock is expected to rise both in the near and mid-term. For June 2022, the baseline forecast from this service is standing at $104 per share resulting in a 9.2% upside potential.
Can GME reach 1000?
So, can GME stock reach $1,000 per share. It's certainly a possibility given that GameStop's dark pool trading percentage is rather high, according to Stonk-O-Tracker data. Dark pool trading in GameStop has ranged between 30%-50%. This means 30%-50% of short selling has occurred behind closed doors.
Is GME going to keep going up?
GME shares nearly doubled to over $300 in four weeks. Fundamentally, little more than a mixed-bag earnings report delivered last week justifies the March 2022 bullishness. It certainly “smells” like another meme-style move higher, which could still be great news for GME investors.
What can I expect from GME stock?
Poor Earnings Growth Prospects Analysts expect GME's revenues to grow marginally in the coming quarters. However, the company's bottom line is likely to worsen in the near term. GME's EPS is expected to remain negative until at least its fiscal year ending January 2024.
How high can GME short squeeze?
You can sell it at $10 and then be forced to buy it back at $20 … or $200 … or $2 million. There is no theoretical limit on how high a stock can go.
How much will $1000 be worth in 20 years?
After 10 years of adding the inflation-adjusted $1,000 a year, our hypothetical investor would have accumulated $16,187. Not enough to knock anybody's socks off. But after 20 years of this, the account would be worth $118,874.
Is GME about to squeeze?
GameStop's (GME) disconnection from fundamentals is good for retail investors. The digital wallet launch is helping with recent positive momentum and catalysts abound. GME remains speculative, but it doesn't seem to matter as another short squeeze is setting up....GameStop Stock Looks to Be Entering a Short Squeeze Set Up.TickerCompanyPriceGMEGameStop Corp.$130.73Jun 2, 2022
Is GME worth buying?
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.
Is GameStop going to short squeeze?
GameStop's share price also went through a large drop in pricing. A short squeeze, one year after GME gained traction on WallStreetBets, is unlikely to happen. A growing focus on GameStop actual business performance indicates more downside potential.
Is Amazon planning a stock split?
Upcoming Stock Splits Amazon is one of several big-name tech and consumer companies planning to split its shares. Alphabet (GOOGL)/(GOOG), Google's parent company, disclosed plans for a 20-1 stock split for both its Class A and C shares in February, which will take effect on July 15.
What time is Gamestop shareholders meeting?
(NYSE: GME), today announced a change in the meeting location for the Company's Annual Meeting of Stockholders scheduled for Friday, June 12, 2020 at 8:00 a.m. Central Daylight Time from the Hilton Southlake Town Square located at 1400 Plaza Place , Southlake, Texas , 76092 to 633 Westport Parkway , Grapevine, Texas ...
Should I buy or sell GameStop stock right now?
2 Wall Street analysts have issued "buy," "hold," and "sell" ratings for GameStop in the last year. There are currently 2 sell ratings for the stoc...
What is GameStop's stock price forecast for 2022?
2 Wall Street analysts have issued 12 month price objectives for GameStop's shares. Their forecasts range from $30.00 to $146.00. On average, they...
How has GameStop's stock price performed in 2022?
GameStop's stock was trading at $148.39 at the beginning of the year. Since then, GME shares have decreased by 13.0% and is now trading at $129.09....
When is GameStop's next earnings date?
GameStop is scheduled to release its next quarterly earnings announcement on Wednesday, September 14th 2022. View our earnings forecast for GameSt...
How were GameStop's earnings last quarter?
GameStop Corp. (NYSE:GME) issued its quarterly earnings data on Wednesday, June, 1st. The company reported ($2.08) EPS for the quarter, missing ana...
Who are GameStop's key executives?
GameStop's management team includes the following people: Mr. Matthew Furlong , Pres, CEO & Director (Age 42, Pay $1.96M) Mr. Mike Recupero , C...
What is George Sherman's approval rating as GameStop's CEO?
342 employees have rated GameStop CEO George Sherman on Glassdoor.com . George Sherman has an approval rating of 26% among GameStop's employees. T...
Who are some of GameStop's key competitors?
Some companies that are related to GameStop include Compass Group (CMPGY) , Kroger (KR) , Chipotle Mexican Grill (CMG) , Seven & i (SVNDY) , W...
What other stocks do shareholders of GameStop own?
Based on aggregate information from My MarketBeat watchlists, some companies that other GameStop investors own include General Electric (GE) , AT...
GameStop Short Interest
GameStop’s short interest is still rather high. GME’s current short interest is sitting at 8.49% via. Ortex.
GME Utilization Rate
GME stock utilization rate is currently 31.68%. This more than a quarter of the available shares in the market are loaned.
GME Stock: Shares On Loan
GME’s shares on loan refers to the number of shares that are being borrowed.
How High Will GME Stock Go?
So, can GME stock reach $1,000 per share. It’s certainly a possibility given that GameStop’s dark pool trading percentage is rather high, according to Stonk-O-Tracker data.
What is the price of GME stock in 2021?
The GME share price exploded to a record intraday high of $483 a share on 28 January 2021, having traded as low as $3.77 a share in the summer of 2020. Retail investors flocked to the stock in anticipation of a short squeeze, with the company expected to benefit from the growth of gaming and demand for new consoles.
Why does GameStop use stock?
GameStop uses stock rally to reduce debt and gear up for transformation. The meteoric rise in the share price has allowed GameStop to raise funds from the equity market to pay down its debt. In April, the company sold 3.5 million shares for $551m and announced the redemption of $216.4m in its outstanding 10.0% Senior Notes due in 2023, ...
How much did GameStop lose in 2020?
The company reduced its net loss to $215.3m for the year, down from $470.9m in the previous financial year.
Is GameStop going through a shakeup?
GameStop is undergoing a complete management shakeup, with almost all the top executives leaving the company. Sherman resigned as CEO in April and will step down in July. Most of the company’s directors did not stand for reelection at the annual shareholder’s meeting on 9 June.
Who is the CEO of GameStop?
The company announced following the meeting that Matt Furlong would be appointed as CEO and Mike Recupero as chief financial officer (CFO), with both joining GameStop from Amazon. Activist investor Ryan Cohen, the co-founder of Chewy, was appointed chairman of the board at the meeting.
Is GameStop closing stores?
Cohen invested in the company in 2020 and has been pushing it to close unprofitable stores and focus on e-commerce sales. GameStop wound down operations in Denmark, Finland, Norway and Sweden last year, the company said in its previous financial report.
Where Things Stand With GME Stock
GameStop reported that its sales in Q2 rose almost 25.6% to $1.18 billion. However, this was slightly lower than in Q1 when sales were $1.27 billion for the quarter ending May 1.
Free Cash Flow Improvement in Q2
I don’t spend much time analyzing net income and EBITDA (earnings before interest, taxes, depreciation and amortization) these days. These accounting constructs now have many non-cash charges that almost every company removes in their non-GAAP “adjusted” reformulations.
Where This Leaves GME Stock
When GameStop reports its fiscal third-quarter results for the period ending Oct. 31, analysts like me will be looking carefully at the Cash Flow statement. We want to see evidence that the company is improving its negative cash burn, and hopefully soon, turning FCF positive.
Is GameStop losing money in 2021?
GameStop is seen losing money in 2021, a big blow to the fundamental story of GME stock. Meanwhile, many of the forces that propelled GME stock aren't as strong as they were. Shorting activity is down sharply — as short sellers see the risk of their moves and pull back.
Will GME stock fall in 2021?
And most people thought it would fall more. Coming into 2021, GME shares had lost a third of their value over the previous five years. Investors betting the stock would fall, the shorts, controlled GME stock shares in late 2019. That overly bearish bet set up a perfect environment for a massive short-squeeze rally.
Is GME stock volatile?
Also, since GME stock is highly volatile, some stop-loss selling and buying may not work as you'd expect. The stock can be halted on extreme volatility. Also, if you set a limit order, it might not execute at your price if the stock moves too fast.
Why the Market Needs to See More
For one, the company needs to start generating positive free cash flow (FCF). For example, in the nine months ending Sept. 30, 2021, GameStop’s 10-Q shows that its cash flow from operations (CFFO) was negative $324 million.
Where This Leaves GME Stock
The market does not like this. If this keeps up, it could use up a huge portion of the $1.4 billion in cash on its balance sheet.
What to Do With GME Stock
This does not mean GME stock won’t rise again. It could even make a turnaround. But this could be temporary if the earnings report for the quarter ending January 31 shows continuing operating losses.
GME Stock: Meme Status Really Means Something These Days
The rise of meme stocks is something I think hit Wall Street by surprise.
Conclusion
GameStop right now is the headline meme stock. That isn’t likely to change for some time.
