GameStop’s shares started to rise late last year, after the founder of the pet-supply site Chewy bought a stake in the company and got a spot on its board. Slowly, the company gained the attention of WSB and traders who frequent the gamer-friendly social media service Discord. The traders’ motivations vary widely.
Full Answer
Why did the price of GameStop stocks jump so suddenly?
The company’s stock price has soared this year on rising enthusiasm over GameStop Chairman Ryan Cohen’s reputation and his efforts to orient the company toward e-commerce.
How high could GameStop go?
While GameStop still has upside to $500, traders need to be aware that traditional technical and fundamental analysis has limited use in this type of a situa...
How high will GameStop go?
MyBookie has a prop asking whether GameStop’s stock price will exceed $420 per share by the time April 20 rolls around. The “yes” side of the bet checks-in as a -160 favorite, while “no” pays out at +120. As of now, there is no reason to believe the soars will slow down any time soon.
Why is GameStop stock going up?
GameStop Corp. (NYSE:GME) shares are trading lower Monday alongside other meme stocks. The stock is continuing to slide lower after the company’s quarterly earnings report last Wednesday showed a 30% revenue boost, but a large widening loss-per-share.
Why did the GameStop stock rise?
Members of a subreddit (online community on Reddit) called r/WallStreetBets discovered this, and almost on a whim, implemented what is called a “short squeeze”. That is, they began buying GameStop, forcing the price up. Hedge funds that had expected to make a hefty profit were staring at immense losses instead.
Why did GameStop stock skyrocket in 2021?
Shares of GameStop skyrocketed in after-hours trading Thursday after a report laid out some of the company's plans to build out a division to buy, sell and trade the buzzy digital collectibles known as non-fungible tokens, reversing recent losses for last year's hit meme stock as the brick-and-mortar game seller ...
Is GME still 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.
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.
Should I sell GameStop stock?
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 stock. The consensus among Wall Street analysts is that investors should "sell" GameStop stock.
Does GameStop short squeeze?
Summary. A large portion of the market still expects a short squeeze, or a monster short squeeze, in shares of GameStop. The dollar amount of shorted GME shares has greatly declined over the last year, however. GameStop's share price also went through a large drop in pricing.
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.
How much will GME stock go up?
It further estimated the GME stock could move up to $271.07 by the end of December 2023 and close 2025 at $394.07.
Is GME still shorted?
GME Is Still Heavily Shorted, A Squeeze Could Be Imminent The number is higher compared to the previous month, when 12.35 million shares were being shorted. A high short interest can of course be related to a company's poor fundamentals.
How high can GME short squeeze?
A short squeeze is vigorous and can spike with no warning. This is where you see 100% gains in a matter of seconds and minutes. A short squeeze can even reach 1000% and 10,000% gains.
How high can a short squeeze go?
If you short a stock at $10, it can't go lower than zero, so you can't make more than $10 per share on the trade. But there's no ceiling on the stock. 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.
Is GME stock a buy?
The financial health and growth prospects of GME, demonstrate its potential to underperform the market. It currently has a Growth Score of B. Recent price changes and earnings estimate revisions indicate this stock lacks momentum and would be a lackluster choice for momentum investors.
What happened
Shares of GameStop ( GME -4.82% ) were bouncing higher Thursday in noontime trading, rising 3.5% following seven consecutive days of declines, especially following the announcement by Microsoft ( MSFT 0.92% ) that it was acquiring video game giant Activision Blizzard ( ATVI 0.53% ).
So what
The turnaround effort is still in its first stages, though the market has no idea what those plans will actually be as management has played it close to the vest on what the details will be.
NYSE: GME
While there's a certain sense to that strategy, it also leads to wild speculation, though part of it seems to be in the realm of non-fungible tokens, or NFTs. GameStop has been putting out help wanted ads, setting up a website, and calling for creators to participate on what is expected to be a new NFT gaming platform and marketplace.
Now what
Despite some notable spikes over the past year, GameStop shares have largely trended lower, and shares of the meme stock are down by more than half over the last two months alone.
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Is Rich a Fool?
Rich has been a Fool since 1998 and writing for the site since 2004. After 20 years of patrolling the mean streets of suburbia, he hung up his badge and gun to take up a pen full time. Having made the streets safe for Truth, Justice, and Krispy Kreme donuts, he now patrols the markets looking for companies he can lock up as long-term holdings in a portfolio. His coverage reflects his passion for motorcycles, booze, and guns (though not enjoyed all at the same time...usually), but his writing also covers the broader sectors of consumer goods, technology, and industrials. So follow along as he tries to break down complex topics to make them more understandable and useful to the average investor. Have a story idea? Contact Rich here. I may not be able to respond to every suggestion, but I do read them all! Think an article needs a correction? Reach Rich here.
Does Rich Duprey have a position in any of the stocks mentioned?
Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Who owns GameStop?
Ryan Cohen, an activist investor, owns a 13 percent stake in GameStop. Cohen plans to turnaround the video-game retailer into an e-commerce powerhouse from brick-and-retail stores. On June 21, GameStop added its new CEO Matt Furlong to its board. Source: GameStop Facebook.
Why are meme stocks at the market?
At-the-market offerings have been used by meme stocks to raise funds because they target retail investors who have been pushing up share prices in the open market. Over the last few weeks, AMC Entertainment, Express, Novavax, and Castor Maritime have also raised funds through at-the-market offerings.
How much did GME sell for Jefferies?
The video game retailer sold 5 million shares for a total of $1.1 billion through Jefferies.
When will GME stock be added to the Russell 1000?
GME stock remains the hottest and most discussed stock on Reddit groups. On June 25 , GME stock will be added to the Russell 1000 Index of companies. That would require ETFs and mutual funds that track the index to buy GME stock, which would likely drive up the price.
Is GameStop closing?
A hedge fund that bet against GameStop was forced to close after suffering huge los ses as a result of a buying frenzy in the video game retailer’s shares in January. On June 21, Financial Times reported that White Square Capital will shut its main fund and return its capital.
Is GameStop stock up in 2021?
GameStop (GME) is one of the Reddit-fueled meme stocks that has skyrocketed in 2021. Despite a significant drop after June 9, it's still up 964 percent YTD. The stock gained 8 percent in the pre-market trading session on June 22. Why is GME stock rising and how high can it go?
Is there a belief on Wall Street that the video game retailer's stock will eventually reflect its fundamentals?
There is strong belief on Wall Street that the video game retailer's stock will eventually reflect its fundamentals.
Is Rich a Fool?
Rich has been a Fool since 1998 and writing for the site since 2004. After 20 years of patrolling the mean streets of suburbia, he hung up his badge and gun to take up a pen full time. Having made the streets safe for Truth, Justice, and Krispy Kreme donuts, he now patrols the markets looking for companies he can lock up as long-term holdings in a portfolio. His coverage reflects his passion for motorcycles, booze, and guns (though not enjoyed all at the same time...usually), but his writing also covers the broader sectors of consumer goods, technology, and industrials. So follow along as he tries to break down complex topics to make them more understandable and useful to the average investor. Have a story idea? Contact Rich here. I may not be able to respond to every suggestion, but I do read them all! Think an article needs a correction? Reach Rich here.
What is the link between Gamestop and AMC?
That stock was AMC Entertainment, which moved higher by 20.34%, again without any obvious catalyst. There is a link between Gamestop and AMC — they are both meme stocks.
Who is the founder of Motley Fool?
I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.
What happened
Shares of GameStop (NYSE: GME) were running 5.6% higher heading into noontime trading Monday despite the announcement the video game retailer's chief operating officer (COO) had quit just seven months after taking the job.
So what
Companies strive for orderly executive transitions, and though a sudden departure of a chief executive officer or chief financial officer might be more worrisome, the loss of the COO isn't a minor transition.
Now what
GameStop investors shrugged off the news, possibly because at this point it was old news, which is often why companies release potentially disruptive news on Friday evenings. It gives investors time to digest the report, or at best, forget about it by the time Monday rolls around.
Why is GameStop so valuable?
Exactly why GameStop’s value — on paper, at least — has rocketed to stratospheric levels has to do with a mix of traditional investing, rampant enthusiasm, stock market mechanics and the belief that anyone with a Robinhood account can meme a fortune into existence.
What happens if GameStop sells off?
If the sell-off is big enough, it could have a cascading effect that leads to broader losses for investors who have never bought or sold a share of GameStop.
What happens when you short a stock?
When the price falls, you buy back the shares and pocket the difference. But shorting a stock is risky — if the price rises, you can lose big. Sometimes you just make a bad bet. But you can also lose if someone tries to push up the price by buying lots of shares, even though the company isn’t doing anything different.
What is it called when you bet against a stock?
Investors who bet against a stock are called “shorts.”. In GameStop’s case, the shorts include at least two big hedge funds. Shorting a stock essentially means borrowing shares from a broker and selling them, with the agreement you’ll return the shares later. When the price falls, you buy back the shares and pocket the difference.
What is an option bet?
These bets involve contracts that give them the option to buy a stock at a certain price in the future. If the price rises, the trader can buy the stock at a bargain and sell it for a profit. (In practice, lots of traders just sell the options contract itself for a profit or loss instead of actually buying the shares, but this description suffices for our purposes.)
What does it mean when a stock increases in demand?
That increases demand, which increases the stock’s price. Which means the brokers have to buy more shares, which means … you get the idea.
Does the bubble affect bettors?
This weird little bubble doesn’t just affect the bettors, though. If big investors on the losing side of these trades have to raise money to cover their losses, it could mean dumping enough shares to hurt the prices of otherwise solid stocks.