Why did GameStop go up so fast?
In January 2021, Reddit users on the r/wallstreetbets subreddit built the foundations for a short squeeze on GameStop, pushing up the stock price significantly. This occurred shortly after a comment from Citron Research predicting the value of the stock would decrease.
GameStop led a pack of highly shorted stocks that surged in January 2021 after retail investors swapping theories on Reddit, Twitter, and TikTok piled in and went viral on social media.
Shares of GameStop surged in January 2021 after retail investors posting in online forums like Reddit's WallStreetBets helped spark an explosion in shares of highly shorted firms.
The stock prediction platform that uses machine self-learning technology projects GME will trade at $140 by March 3, 2028, a 672% increase. Elsewhere, three analysts working on Wall Street have assigned GameStop a consensus 'sell' rating.
Jan 13, 2021: Stock surges more than 50%
Some retail traders jumped on GameStop's announcement, and in just a few days the stock closed at $31.40 a share on Jan. 13 -- a spike of more than 50% since the Jan. 11 announcement.
Although short squeezes may occur naturally in the stock market the U.S. Securities and Exchange Commission (SEC) states that abusing short sale practices is illegal.
- The all-time high GameStop stock closing price was 86.88 on January 27, 2021.
- The GameStop 52-week high stock price is 47.99, which is 131.9% above the current share price.
- The GameStop 52-week low stock price is 15.41, which is 25.5% below the current share price.
In January 2021, Reddit users on the r/wallstreetbets subreddit built the foundations for a short squeeze on GameStop, pushing up the stock price significantly. This occurred shortly after a comment from Citron Research predicting the value of the stock would decrease.
GameStop is being called a 'pump and dump' scheme—here's what you need to know. Eric Chaffee, Distinguished University Professor in the UToledo College of Law, discussed how small investors banded together to send GameStop's stock price soaring, prompting Robinhood and other broker dealers to restrict trading.
A pump-and-dump scam is the illegal act of an investor or group of investors promoting a stock they hold and selling once the stock price has risen following the surge in interest as a result of their endorsem*nt.
What price could GME realistically reach?
GameStop Corp (NYSE:GME)
The 2 analysts offering 12-month price forecasts for GameStop Corp have a median target of 13.25, with a high estimate of 20.00 and a low estimate of 6.50. The median estimate represents a -35.96% decrease from the last price of 20.69.
Will GameStop stock recover? No one can say for sure if GameStop will ever return to its 2021 highs of over $80 a share. As of 7 October 2022, algorithm forecaster Wallet Investor predicted GME could reach $82.04 in May 2026, while Gov Capital had it at a similar level of $82.03 by November 2024.
GameStop's prospects aren't great as any remaining investors are still reckoning with. It sports a middling 21 IBD Composite Rating. That means its chart and fundamentals only underperform 79% of all companies' And the company is seen losing money in fiscal 2024, ended in January 2024.
GameStop's "Squeezeversary”
GME jumped 15% despite there being no significant news related to the company. This significant rise in share price was accompanied by a rise in volume (also by about 15%). Nearly 9.2 million shares of GME traded hands on Friday, with retail traders' sentiment likely driving up the volume.
Based on our forecasts, a long-term increase is expected, the "GME" stock price prognosis for 2028-05-03 is 58.029 USD. With a 5-year investment, the revenue is expected to be around +180.47%. Your current $100 investment may be up to $280.47 in 2028.
Depending on the amount of stock shorted, a short squeeze can last anywhere between a few days and a few months. One way to calculate this is through the short interest ratio – dividing a company's shorted stocks by its average daily trading volume.
The GME short squeeze can see the stock price continuing higher until all of the short positions who want to cover have bought shares back at a higher price. Without the shorts covering their positions, the stock price will eventually plateau as the buying pressure dries up.
| Day's Range | 20.38 - 20.96 |
|---|---|
| 52 Week Range | 15.41 - 47.99 |
| Computer and Computer Sof... | |
The short volume for $GME is 47.750% on 2023-05-12. The short sale volume is 0.34M, long sale volume is 0.38M. The total volume is 0.72M. The short sale volume is -2% compared to 2023-05-11.
Largest shareholders include Vanguard Group Inc, BlackRock Inc., Susquehanna International Group, Llp, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, IJH - iShares Core S&P Mid-Cap ETF, State Street Corp, NAESX - Vanguard Small-Cap Index Fund Investor Shares, Susquehanna International Group, Llp, ...
Who owns the most GameStop stock?
Gamestop Stock Ownership FAQ
Who owns Gamestop? Gamestop (NYSE: GME) is owned by 27.96% institutional shareholders, 10.63% Gamestop insiders, and 61.41% retail investors. Ryan Cohen is the largest individual Gamestop shareholder, owning 9.10M shares representing 2.99% of the company.
| Stockholder | Stake | Total change |
|---|---|---|
| The Vanguard Group, Inc. | 7.98% | +2.04% |
| BlackRock Fund Advisors | 6.69% | +6.83% |
| SSgA Funds Management, Inc. | 2.38% | +4.70% |
| Geode Capital Management LLC | 1.15% | +5.33% |
(KY3) - A Missouri man recently invested $4,500 into bets on GameStop via the Robinhood app. Then stocks skyrocketed after his investment. CNN reports AJ Vanover, who earns around $35,000 a year, is now a millionaire on paper after his investment.
The ongoing decline in used-game sales has pushed GameStop's gross margin well below that of other retailers. High operating expenses tied to thousands of small stores make it hard to turn a profit.
The stock has declined since its peak in 2021, but demand for games has not diminished. The particular decline in GameStop Corp. stock is due to the appearance of a chart bubble following the crisis of 2021.
Melvin had been betting against GameStop since 2014. It profited as the shift toward downloaded and streaming videogames caused the bricks-and-mortar retailer's stock to drop.
Melvin Capital, hedge fund torpedoed by the GameStop frenzy, is shutting down. The firm lost billions of dollars as it scrambled to cover its bets against the video game retailer that became a darling of retail traders. As a subscriber, you have 10 gift articles to give each month.
Although simply purchasing GameStop stock is not inherently deceptive, they undoubtedly manipulated the stock price. However, even in jurisdictions that recognize open-market manipulation liability, it is dubious the Reddit traders intended to improperly manipulate the market.
If you are involved in any part of the pump and dump scam, you can face serious criminal charges. While pump and dump schemes can lead to jail time and significant financial penalties, prosecutors must prove beyond a reasonable doubt that you broke the law.
Pump and dump crimes may result in various legal and criminal penalties, which include: Misdemeanor charges or felony charges, depending on the extent of the scheme and the amount of money which was involved; Criminal fines; Jail or prison time; and.
Are penny stocks illegal?
Are Penny Stocks Illegal? Penny stocks are legal, but they are often manipulated. Penny stocks get their name because of their low share price. Any stock trading below $5 a share is generally considered a penny stock.
GME stock price will not hit $10,000 but the possibility is less. In mid of 2025 will be hit nearly $1,000.
So, can GME stock reach $1,000 per share. It's certainly a possibility given that GameStop's dark pool trading percentage is rather high, according to Stonk-O-Tracker data.
Thanks to GameStop's management's cost-cutting efforts and GME's loyal shareholders, it's likely the stock will perform better in 2023.
Retail investors are still holding GME shares and keeping the stock from plunging even further.
The intrinsic value of one GME stock under the Base Case scenario is 16.73 USD. Compared to the current market price of 20.43 USD, GameStop Corp is Overvalued by 18%.
GameStop (GME) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
GameStop Stock Buy Hold or Sell Recommendation. Stocks . USA . Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding GameStop Corp is 'Strong Sell'.
Still, while GME is not going bankrupt soon, it does not make it a good investment. For one, analysts expect that the company's annual revenue and profits will continue struggling. Expectations are that its revenue will drop to $5.91 billion this year and $5.63 billion in 2024.
Share All sharing options for: GameStop is profitable for the first time in years, but at whose expense? GameStop made money in the last quarter of 2022, something it hasn't done in years.
How high can a stock go during a squeeze?
If you short a stock at $10, it can't go lower than zero, so you can't make more than $10 per share on the trade. But there's no ceiling on the stock. You can sell it at $10 and then be forced to buy it back at $20 … or $200 … or $2 million. There is no theoretical limit on how high a stock can go.
Mike McCaskill spent years scouring the stock market and betting on long shots. Then he found the opportunity that changed his life—and helped spark the mother of all short squeezes.
A short squeeze is a high-risk situation and it may cause havoc in the market, but most don't last forever. Most eventually subside.
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GameStop's debt corresponds to about 9% of the company's enterprise value, $5.38 billion. Although acceptable debt-to-enterprise-value ratios vary among industries, as a rule of thumb, anything below 30% is considered low.
GameStop has 304.72 million shares outstanding. The number of shares has increased by 4.75% in one year.
The first GME short squeeze hit as high as $500 per share during pre-market trading, and this was with a short interest of over 140%. This can be used as a comparison for all future potential GME squeezes.
The GameStop crash was all but inevitable as investors, specifically subscribers to the r/WallStreetBets subreddit, pushed GameStop (Ticker: GME) from $18.84 per share on Dec. 31 to $483 during intraday trading on Jan. 28.
Targets for 2022, 2023 and 2025
The forecaster set a baseline GameStop stock forecast for 2022 of $27.38 by the end of December 2022, up from $25.99 at the time of writing. It further predicted GME could reach $42.47 by the end of December 2023 and close 2025 at $72.54.
GameStop (GME) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture.
