During a recent SEC report, the exchange was investigating the price swings in GME stock, in addition to its elevated short interest and frequent mentions on Reddit. The commission is also scrutinizing the company’s market structure, regulatory framework, and digital engagement practices. They’re also looking into the use of dark pool trading and short selling. All of this will impact GME stock’s future performance. Ultimately, investors should follow these tips to maximize profits from GME stock trading.
Earlier this year, GameStop stock was trading at a 20% discount to its IPO price. The stock also enjoyed a rally on Reddit and is available through several online brokers. However, there are some restrictions. Buying shares on the NASDAQ and US markets may require you to use a trading platform with NYSE access. Alternatively, you may want to consider trading the company’s stock through a brokerage firm that offers commission-free options.
Before investing in GME stock, make sure to select a brokerage that offers access to the US market. Look for a commission-free trading option. Additionally, you’ll want to find a broker that specializes in game stocks, as GME is listed on the NYSE and NASDAQ. Then, monitor the price of GME stock to make sure it remains in the range you’ve set for yourself. You may want to use a specialized game stock brokerage in Canada.
GameStop (GME) announced a stock split plan last week. The retailer hopes that the stock split will improve liquidity and spark a rally in its shares. While the stock split doesn’t affect GME’s valuation, it will improve liquidity and allow retail investors to purchase fractional shares. In addition, investors should keep in mind that stock splits can have a big impact on options markets. One stock can rise significantly and fall substantially due to the stock split.
When looking at the price of GameStop stock, investors should be aware that it has a low beta, which means it is sensitive to market movements. In addition, it has a 0.08 correlation with the SPY ETF. The company recently reported quarterly earnings and revenues of $2 billion. It beat revenue estimates by $34 million but missed earnings expectations by -$2.70 per share. Investing in GameStop may be a good idea if you’re a gamer.
Another thing to be aware of is that the price of the company’s shares has hit multiple highs in the past few weeks. Since Jan. 8, the share price of Gamestop increased from $18 to $157. Some of this may be due to the manipulation of Reddit. But the truth is that the stock had been struggling for months or years before the rally, and some speculated that it was a result of Reddit manipulation. Despite the positive news, the company’s outlook remained grim. Lower retail sales and used game sales, as well as the absence of digital distribution, has left the retailer’s business vulnerable to a major decline.