GME stock was one of the best buys last year, when it lost almost one-third of its value over five years. Since then, the company has continued to increase in value, with some investors even putting their money into GME shares. The company is now in the S&P Midcap 400, so it is easy to track its performance with a stock market index. However, investors should be aware of the risks associated with trading GME stock.
There are some reasons to avoid trading GME stock. First, it has a volatile price that has not been sustainable over the long term. In addition to volatility, GME stock’s recent performance is disappointing. While the stock has exhibited a high percentage of volatility over the past year, it has not yet achieved the level of profitability that investors are looking for. Therefore, it is not recommended for anyone to invest in GME stock.
Second, the GME stock has not been making enough money to justify its price increase. That’s a reason to avoid investing in GME stock. While it remains a speculative stock, it has already soared 11% since its IPO last year. As of the end of last week, it has dropped by nearly 10%. While this may seem like a big risk, the company is clearly on the right track.
Third, the stock has been a strong performer this year, despite a dip last week. Despite a weak earnings forecast, the company’s stock price continues to rise, suggesting that the recent rally is just a blip in the price. Meanwhile, the company’s new acquisition of Loopring has been one of the best investments of this year. The company’s recent investment story was thrilling, but it isn’t an investment anymore.
While GME stock has remained stable and remained profitable during the past year, the SEC is looking into the company’s price swings and potential for growth. The company hasn’t been making enough money to justify its high price and isn’t making enough money to justify its recent losses. Additionally, short sellers are putting a huge premium on GME stock. It’s unclear whether it will be able to make a profit this year. The SEC is currently studying whether dark pool trading is a concern.
Some investors have argued that GME’s stock price spike is unsustainable, and that it may have peaking too high. But, as the SEC investigates the price swings of GME stock, investors are concerned that it’s not making enough money to justify its high price. Moreover, it has not been making enough money to cover its short positions. As a result, the company is facing a major regulatory scrutiny.