GameStop stock rises strongly: It could be headed to the moon

Share this:

Last updated on March 30th, 2022 at 12:41 pm

GameStop stock rises strongly, like a meme. Here are the reasons shares could reach the moon in 2022 for the first time.

Today has been a great day for GameStop stock (GME) – Get GameStop Corp. Class A Report investors. At the end of Tuesday’s trading session, shares of the popular video game retailer GameStop stock rises strongly had risen more than 30%.

Is this the start of another melt-your-face rally? Traders and investors will they revisit the golden days of 2021, when GME’s share price rocketed to over $300 per share?

Gamestop stock rises strongly: It could be headed to the moon
Gamestop stock

Read also: Moscow Stock market Reopens for some bond trading

GameStop Stock (GME): smells like meme mania

It doesn’t matter whether GameStop investors like the term “meme mania”, today’s price action indicates that this is exactly what has been happening in the past few days.

The spike on March 22 is only the beginning of the story. GME’s stock has climbed 55%-plus in only six trading sessions since the March 14 year-to-date low of $78 per share.

During the most recent “meme attack” in June of last year, a strong rally occurred in such a short period. Shares of GME nearly doubled in four weeks to over $300.

The March 2022 bullishness is largely based on a mixed-bag earnings report released last week. GME investors may still be pleased with this move, as it appears like another meme-style move higher.

Are the GameStop fundamentals looking good?

Last week, We explained that GameStop’s performance was not that great.

See also  How to Secured Loan With IVA

Even so, the retailer exceeded expectations by two percentage points with a 6% revenue increase for fiscal Q4. Despite tough economic conditions, the small collectible business is doing well, and the software business is doing well as well

In contrast, the hardware sector continues to disappoint, posting a growth rate of only 2% last quarter. It’s especially disappointing to see this early in a video game console cycle that’s been anticipated for months, if not years.

There seems to be a problem with the disrupted supply chain, which has been hurting hardware sales and margins. These issues are unlikely to be resolved anytime soon.

The apes are taking over!

Due to the lack of outstanding financial performance, and as suggested in the title of my recent earnings review, I believed it was up to the apes to boost the GME share price through enthusiasm and optimism. Currently, that is what is taking place.

There may be little difference between the business fundamentals and the stock price if HODLers remain optimistic that the path that will lead GME stock to the moon has yet to be carved out.”

It is (by a large margin) the most popular ticker on Reddit today: 10 times the number of mentions on the site as the peer AMC stock (AMC), and nearly 70 times the number of upvotes. The recent rally in GME could be attributed to momentum alone, driven by online forum discussions. Traders may push up the price of GameStop stock even more if FOMO (fear of missing out) drives them to pile in.

See also  Black Adam Trailer: Dwayne Johnson Demolishes JSA's Hawkman
Trending stocks on Reddit in the past 24 hour
Trending stocks

Considered in conjunction with elevated short interest of 25%, the scenario looks even more promising. Those figures, based on end-of-February positions and provided by Yahoo Finance, may have even reached higher ahead of GameStop’s earnings call.

Additionally, Seeking Alpha recently discussed the possibility of a gamma squeeze. It is possible that this could be a result of an increase in out-of-the-money calls on GameStop stock.

Yes, GME is on its way to the moon. It is important to keep in mind that anything is possible in the “meme world”, including a sharp correction – something that occurred even after the impressive rally of 2021. 

Therefore, investors and traders should always exercise caution when buying securities here, not only because of the potential rewards, but also because of the risks involved.

(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report. )

You can Check also:

Read also: Is Jimmy Fallon the Worst Late Night Host , and Verizon Users Report Dodgy Messages | How to Stop Spam Texts

Share this:

Leave a Comment