GME Stock – Is it a Good Investment?
Despite being part of the S&P Midcap 400, GME stock has had a rough ride over the past five years. Last September, shares were nearly 4,000% off their buy points, and the shorts are now controlling the market. The overly-bearish bet created an environment perfect for a massive short-squeeze rally. The recent addition of Ryan Cohen to the GME board, and an announcement that he would join the company’s board of directors, have given investors hope that Cohen will jolt the stock back up.
But the broader market is more bearish than the short-sellers are letting on. The game retailer GameStop has a weak fundamental story, which dilutes the overall Composite Rating. A low Composite Rating means that GME is lagging behind 64% of companies. With its weak fundamentals, it is hard to see how this stock can become a great investment. It’s currently down 12% in the NYSE, and the CAN SLIM investing paradigm suggests that stocks with a high Composite Rating are a good investment.
GME stock has strong fundamentals, but it’s a risky investment. Its volatile price is not healthy for investors. Some brokerages have limited the number of GME stock transactions, meaning that investors could only sell the amount they already had and not buy more. The high volatility can stop trading and limit orders may not execute. As a result, investors should exercise caution when investing in GME. The market is a very volatile place for stocks.
GME stock is a great choice for investors who want to earn big money by investing in video games. Previously, there were few online gaming stores, but GameStop’s stores were a hub for gamers. The stores also allowed customers to trade in their used games for new ones. That made it a lucrative place for players to trade their old games. Despite the competition from Amazon, Walmart, and Target, GameStop has remained relevant.
GameStop is gearing up to enter the NFT space. The company has hired more than 20 people to build its platform. Its CEO has been tweeting Elon Musk-style, and he’s also been sporadically releasing cryptic messages in his tweets. This has made GME stock a favorite among meme stock enthusiasts. In the meantime, the company’s growth story continues to be a major factor for investors.
The GME stock has a very weak fundamentals. This weak foundation has dragged down its overall IBD Composite Rating, a metric that measures the company’s performance based on its fundamentals. This is a red flag because it’s lagging 64% of its peers. Hence, GME stock is not a good choice for retail investors, but if you’re interested in buying shares of gme stock, it’s worth exploring.