Is GameStop a risky investment? (2024)

Is GameStop a risky investment?

GameStop Corp has a volatility of 3.23 and is 5.05 times more volatile than NYSE Composite. 28 of all equities and portfolios are less risky than GameStop Corp.

Is GameStop a risky stock?

Betting either for or against GameStop carries significant risk potential given the company's historical volatility in recent years and its sensitivity to short-term news.

Is GameStop good to invest in?

Don't Rush Into GME Stock

GameStop is undergoing some major changes, including an executive-level shakeup. Plus, GameStop's cost-reduction efforts might or might not put the company in a better financial position for the long term. There are several unknowns and GameStop's future remains unclear in 2023 and 2024.

Did investors lose money on GameStop?

Some big names lost money on GameStop, but others made a bundle. The same goes for everyday investors — some won, some lost, and plenty were just in it for the casino-like ride.

Will GameStop stock go back up?

However, based on current analyses and predictions, a substantial recovery in GameStop's stock price in the near future appears unlikely. That being said, the new CEO seems to know what he's doing. I wouldn't be surprised if GameStop squeezes again in 2024.

Is it smart to invest in GameStop right now?

The financial health and growth prospects of GME, demonstrate its potential to perform inline with the market. It currently has a Growth Score of B. Recent price changes and earnings estimate revisions indicate this would be a good stock for momentum investors with a Momentum Score of B.

Is GameStop in danger of going out of business?

Is GameStop dying? GameStop isn't dying yet, per se. They're still a multi-billion dollar business. But their niche in the industry is shrinking, and it will eventually be nonexistent.

Is GameStop a buy sell or hold?

GameStop stock has received a consensus rating of sell.

What is the future of GameStop stock?

According to our current GME stock forecast, the value of GameStop shares will drop by -4.48% and reach $ 14.33 per share by March 10, 2024. According to our technical indicators, the current sentiment is Bearish while the Fear & Greed Index is showing 39 (Fear).

Is GameStop still doing well?

In the fiscal year 2018 GameStop, which is headquartered in Grapevine, Texas, was $673 million in the red; in 2019 it lost $471 million; in 2020, $215 million; in 2021, another $381 million; and in 2022, $313 million.

Did anyone get rich GameStop?

Keith Gill learned about investing and became convinced that GameStop stock was undervalued, sharing this belief with others on Twitter (now X) with the handle RoaringKitty. He initially purchased $53,000 worth of GameStop stock in 2019. At the height of the GameStop surge, Gill's stock was valued at $48 million.

Who is the biggest investor in GameStop?

Is GameStop doing well financially?

Profitability and Growth

Investing in profitable companies, especially those with consistent profitability over the long term, is less risky. GameStop has been profitable 5 over the past 10 years. Over the past twelve months, the company had a revenue of $5.80 billion and Loss Per Share of $0.33.

Are people still holding GME?

GameStop's Current Ownership

Today, GameStop's (GME) shareholder structure consists primarily of public and other investors — predominantly retail investors — who account for nearly 60% of GameStop's outstanding shares. These shareholders own stock worth an implied market value of $2.67 billion.

What is GameStop prediction for 2024?

According to analytical forecasts, the price of GME stocks may reach $14.37 by the end of 2024, and it is expected to be - $11.82 by the end of 2029.

What is the highest stock price ever at GameStop?

What is a strong buy stock?

A strong buy is an analyst's recommendation to purchase shares of a company that, based on analysis, is expected to dramatically outperform in the short- to mid-term. A strong buy rating is usually accompanied by an extremely optimistic price target on the stock, such as a 30% to 50% gain over the coming 12 months.

Why did GameStop stock go so high?

The market demand they create by purchasing the stock to cover their short positions further raises the price of the shorted stock, thus triggering more short sellers to cover their positions by buying the stock. This can result in a cascade of stock purchases and an even bigger jump of the share price.

Why was GameStop stock so high?

The surge in GameStop shares was backed by strong options activity. Some 230,000 GameStop options contracts traded by 11:38 a.m. (1638 GMT) with the bulk in call options, typically bought to bet on shares climbing higher.

What problems is GameStop facing?

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These challenges include a shift away from physical game sales towards digital ones, an increase in the proportion of spending on microtransactions, the rising popularity of subscription services, and the possible decline in hardware sales owing to the advent of game streaming services.

Why is GameStop on the decline?

Once a mainstay of American malls, GameStop's business has declined in recent years as more people purchase games online and it faces competition from e-commerce players.

Why did GameStop drop so much?

GameStop's shares continued to decline in September after GameStop announced that Cohen had officially become the company's CEO. Cohen's survival memo to GameStop employees — which called for stringent frugality to streamline operations and steer the company toward profitability — did little to improve the situation.

What are analysts saying about GameStop?

The average price target for GameStop is $6.00. This is based on 1 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $6.00 ,the lowest forecast is $6.00. The average price target represents -59.40% Decrease from the current price of $14.78.

What is the true value of GameStop stock?

As of 2024-03-06, the Intrinsic Value of GameStop Corp (GME) is 2.95 USD. This Gamestop valuation is based on the model Discounted Cash Flows (Growth Exit 5Y). With the current market price of 15.00 USD, the upside of GameStop Corp is -80.3%. The range of the Intrinsic Value is 2.75 - 3.37 USD.

What is GameStop worth now?