GameStop stock has been rising in price as of late, with shares soaring by more than 5% during the trading day on May 4. However, the S&P 500 closed the day almost 3% higher. GameStop stock is still 15% lower year-to-date, while the S&P 500 is 10% underwater. The company has been operating for 37 years and is expected to have more than 4,800 stores by the end of 2021. At last count, there are currently 3,192 GameStop locations in the US. GameStop stock price may be an indicator of volatility and stability.
As of March 22, the stock was trading near the $150 mark, thanks to a short squeeze involving GameStop. However, the recent plunge has resulted in a massive rally in GME stock by Redditors. However, investors should be cautious and keep an eye on the stock’s direction. They may get a chance to pick up GME stock at a lower price in the coming weeks. The stock may be able to rise even higher after the recent dip, but investors should take caution.
GameStop stocks are under pressure due to failed smartphone retail investments and declining video game sales. However, the price of GME stock was pushed higher by hedge funds exploiting the short-selling in the stock. An anonymous user, called DeepFuckingValue, noticed that hedge funds had been illegally shorting the stock. The resulting short squeeze was orchestrated by millions of WSB users. The resulting spike in GME stock set off a debate about the role of hedge funds in the economy.
In late January 2021, GameStop stock skyrocketed. While investors were quick to praise GameStop’s stock, some lambasted hedge funds for shorting the company. Then, GameStop stock declined again, due to restrictions from the broker. It has been volatile since then and has yet to regain its January high. In the meantime, investors can use eToro to buy GameStop stock. However, investors should keep in mind that the company stock could still drop into the 90s or lower in the coming weeks.