If you are considering buying GME stock, here are some things you should know. The GME stock currently has an IBD Composite Rating of 51, lagging about half of its peers. The CAN SLIM investment paradigm favors stocks with Composite Ratings between 90 and 95. The stock has recently risen over the past month. Despite these setbacks, GME stock remains a good buy if you have a long-term outlook for the company.
The stock’s recent upward trajectory is not surprising; investors often favor stocks that have confirmed uptrends. While GME stock has been a speculative play in the past, it may now be in a position to make a speculative play as support near the 10-week line comes into play. Whether you’re a beginner or an experienced trader, knowing how to control risk is critical to making a profit from swing trading.
GameStop’s stock price has increased recently, thanks to a massive short squeeze by game store operators GameStop. Redditors rallied the stock after the company revealed that it had $1.4 billion in cash on hand at the end of December. The stock price has since fallen below $200, but analysts think this is a short-term dip and it could bounce back in the future. This means that investors should wait until the company announces more details about its upcoming quarter and how it intends to use that cash.
Aside from the price rise, GameStop’s short-sellers have reportedly lost massive sums of money. This has caused some Wall Street short sellers to seek a bailout. Point72 Asset Management and Citadel have recently bought the company and have agreed to provide them with US$100 million in order flow fees. Citadel has also denied pressuring Robinhood to restrict retail trading in GME stock. There are other rumored reasons behind the recent decline.
GameStop’s stock rose over 40% in March. However, in April, the stock has been trading differently. Some Reddit users praised GameStop stock, lambasting hedge funds that shorted it. Because of restrictions by brokers, GameStop’s stock has been volatile and has not regained its January high. Regardless of the reasons for the stock’s drop, GameStop’s underlying business remains sound and is a good investment choice for any investor.
A recent controversy has caused many investors to consider GME stock. After all, the company’s shares have fallen sharply due to poor sales of video games and failed investments in smartphones. But the WSB users noticed that hedge funds had been illegally shorting GME stock, triggering a short squeeze. Following this, millions of WSB users orchestrated a “short squeeze” of GME stock, sending the stock price skyrocketing. This event has caused a lively debate in the market about hedge funds.
This is exactly the kind of situation that has created a situation where meme-stocks are taking advantage of the uncertainty. The market has recovered from a bear market in December and is now on a tear. FTX, a crypto derivatives exchange, has recently listed the WallStreetBets quarterly futures index. The FTX also listed the WallStreetBets index, which includes GameStop, BlackBerry, and AMC. The next time you’re looking for a good stock to invest in, do it now.