GameStop-GME Stock Remains a Reddit Vs. Wall Street Competition

Maryam Nasir
by: Maryam Nasir
GME Stock

GME Stock Analysis (GME:NYE):

Last Closing Price: $27.60

Consensus Rating: Sell

12-Month Price Target: $49.38

Market CAP: $8.41 Billion

 

Nearly 22 months after the meme frenzy on the retail stock initially began, GameStop Corp. (GME:NYE) is still very much a battleground stock. Bloomberg reported that early purchasers of GME stock are still resting on substantial paper profits while other speculative investments have lost value.

The GME stock remains unattractive to Wall Street analysts due to valuation and profitability problems.

Michael Pachter, an analyst at Wedbush Securities, recently remarked that the gaming retailer suffered another operational loss in FQ2 and emphasized that the company is a fundamental problem.

However, he applauded the tenacity of the “Reddit Raiders” and the HODL community for remaining loyal to GME. Pachter believes it is partially due to the allure of riding with major shareholder Ryan Cohen, but he is skeptical that it will endure.

He cautioned, “The man is the pied piper of retail; he is not the Warren Buffett of retail.” “I cannot explain the phenomenon of Ryan Cohen’s cult because he is not affiliated with GameStop,” he continued. Wedbush has the lowest price objective on Wall Street for GameStop (GME:NYE), at $6.

The next earnings report for GameStop (GME:NYE) is anticipated to be released within the first two weeks of December. The conference call could explore the repercussions of the FTX partnership’s dissolution. December is often the month when GME stock experiences the greatest earnings-day volatility. GME short interest continues to exceed 20% of the total float.

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