All articles tagged with #gme stock
GameStop's stock plummeted over 22% after announcing a $1.75 billion convertible notes offering, likely to buy Bitcoin, but the move has raised concerns about timing and strategy. The stock has fallen 40% from its recent high, and analysts recommend against buying due to lack of clear strategy and weak fundamentals, with one analyst setting a target of $13.50, indicating further downside.
GameStop announced its first Bitcoin purchase of 4,710 coins, investing over $515 million, as part of a broader strategy to include cryptocurrencies in its reserves. Despite a recent stock surge, GME's stock experienced volatility, and the company's earnings report showed mixed results with solid earnings but declining revenue. The stock remains above key buy points, and investors are watching its performance amid its crypto investments and market trends.
GameStop's stock surge appears to be waning as retail investors become more aware of the risks associated with meme stocks and short squeezes. Despite raising over $2 billion recently, the company's declining sales and lack of strategic innovation suggest a bleak future. Financial analyst Chris MacDonald advises against investing in GME stock due to its high risk and unstable market conditions.
GameStop's stock continues to plummet following its latest earnings release, with analysts at Wedbush predicting the company's demise later this decade due to declining sales, cash burn, and lack of a clear strategy to replace lost game sales. Despite manageable losses in the near term, the firm believes GameStop may struggle to trim costs fast enough to prevent further growth of its losses, potentially leading to a likely runway of no more than five years. Wedbush has cut its price target for the stock to $5.60 from $6 per share, maintaining an underperform rating, implying a downside risk of nearly 60% based on Wednesday’s price of $13.10.
Investors hoping for a GameStop short squeeze or a turnaround under CEO Ryan Cohen may be disappointed. The short-squeeze frenzy that boosted GameStop's market capitalization in 2021 seems to have lost momentum, leaving investors with shares of an unprofitable business. Rumors of a ban on naked short selling are unfounded, as the practice is already illegal. Cohen's leadership abilities have been called into question, with concerns about his cost-cutting approach and lack of experience managing a physical retailer. Some analysts warn that GameStop's path to zero is relentless and likely unstoppable, advising investors to stay away from GME stock.
GameStop's Q4 earnings report exceeded expectations, with adjusted earnings of 16 cents per share compared to a 47-cent loss last year. Net sales dipped 1.2% to $2.226 billion, but hardware and accessories sales increased 4.5% to $1.24 billion. However, software sales fell 9.5% to $1.82 billion. GME stock jumped more than 34.5% to 23.75 after hours Tuesday following results.