The latest earnings report for GME shows that the company had a loss of 56 cents per share in its fiscal year. That’s a massive drop from last year, when the company lost almost a third of its value in just five years. The company is a game retailer with over 4,800 locations and has an IPO scheduled for October. In January, sales rose 4.3%, but that decline has since reversed. Moreover, analysts expect revenue to increase 12% this fiscal year and profits to reach $5.7 billion.
The SEC is investigating the price changes and large volume changes of GME stock. They’re also looking into the regulatory framework, digital engagement practices, and payment for order flow. The SEC is closely monitoring market structure, dark pool trading, and short selling practices. Despite the skepticism of many, some investors are still holding their GME stocks. Even the SEC is examining the company’s trading practices to determine whether there’s anything rigged about them.
As of today, the SEC is investigating the GME stock price swings. While it seems like an unlikely scenario, the price rise and dive were driven by collective resentment. Moreover, the SEC is banning Robinhood trading for a while, a sign that the market isn’t fully functioning. Ultimately, this doesn’t mean that GME has no future. The SEC will continue to monitor the company’s business and make an informed decision to help investors choose the best investment.
The shaky fundamentals of GME stock are a concern for investors. In fact, the company’s shares have fallen as much as 60% in the past year, which makes the company a risky bet. The price of GME stock has climbed too high and isn’t making enough money to justify the inflated price. Some investors have also been concerned about the role of short sellers in the industry and payment for order flow. Another dynamic affecting the market is the use of dark pool trading.
In addition to its share price, GameStop stock has been a hot topic of conversation on the internet for a while. The company’s stock prices have surged recently, and it has been able to briefly surpass $500 in pre-market trading today. But as with all risks, the company is not making enough money to justify a stock’s price swings. If you’re thinking about investing in the stock, you’ll need to make the most of it.
The stock price of GME stock has soared in recent months, but its fundamentals have weakened, diluting its CAN SLIM model. Moreover, it has a poor IBD Composite Rating, which measures the company’s fundamentals and stocks. Therefore, the CAN SLIM model recommends buying GME stock when the company’s CAN SLIM model is a top priority.