GameStop Stock – Is it Worth Investing In?
If you are a stock enthusiast, you probably have heard of the GameStop stock. It soared late in January 2021 on hype and was lauded by Reddit users, but was eventually slagged by broker restrictions. The company has since been volatile, and it is not likely that it will ever regain its January high. If you’re thinking of investing in GME, make sure to track the stock’s performance with a graph and special offers. You can even compare it with other types of investments.
The stock’s rise in January has been accompanied by a series of strong fundamentals. The IBD Relative Strength Rating (RSR) of GME has reached a perfect 99. The RS Rating compares the stock’s price increases with those of all other stocks. Top-performing stocks have RS Ratings of at least eighty. In other words, GME’s RS line is blue, and it is outperforming the S&P 500 by a wide margin.
However, GME stock’s volatility has put investors on edge. Early this year, some brokerages banned transactions in GME, forcing investors to sell only what they had. The stock has since plummeted. Furthermore, if the market is experiencing extreme volatility, your limit order may not be executed. If you buy GME stock using a limit order, your purchase will not be affected if it moves too fast. The best way to avoid the risks of losing money on GME is to buy shares at reasonable prices.
Despite the negative news about GameStop stock, its fundamentals still remain sound. The company is currently running 5,000 stores, and sales are up 4% from last month. The company recently launched a new app to help traders trade the stocks. The new stock has gotten a lot of positive reviews from users. This week, the GME stock has begun to plummet, but the company has already surpassed its previous high of $1.74 per share in fiscal 2021.
In January, GME stock surged 1,600%. The spike was caused by an online buying spree by individual investors. The buy-and-sell-force coordinated their purchases on message boards. This caught the “shorts” off guard and forced them to buy the stock. This helped further fuel the gains. This was the case with GME. The resulting price increase was so large that it has outpaced the S&P 500.
This stock’s volatility has caused it to be one of the most volatile stocks on the market. Some brokerages even limited GME stock transactions earlier this year. This meant that investors could only sell the amount of GME stock they owned – but not buy more. While GME stock fundamentals are still positive, investors should be aware of the risks. The company has been losing money for years. Several analysts have predicted that the price will fall by 12% over the next three years.