Is GameStop (GME) stock unstoppable? Up 50% in just one day

Stock Market Update: May 13th, 2024

GameStop (NYE: GME) shares rose by 48% after the video game retailer reported a profit in its Q4 earnings report, the first quarterly profit in two years. The company’s earnings per share came in at 16 cents, an improvement over the losses per share of 49 cents from the same time last year and better than Wall Street’s expected -13 cents per share. GameStop also reported revenue of $2.23 billion, slightly lower than Q4 2021 but above analysts’ estimate of $2.18 billion. The rise in profits was attributed to lower expenses, and CEO Matt Furlong said that the company would continue to cut costs and may consider stocking toys and high-margin products in its stores. GameStop stopped providing guidance during the pandemic and has yet to bring it back to its earnings reports. The company’s shares surged to $26.70, the highest point since November 2022, but the stock price has declined since its heyday as a meme stock in the early pandemic years.

GameStop Reports Quarterly Profit

The article reports that GameStop has reported a quarterly profit of $48.2 million, compared to a loss of $147.5 million in the same period a year ago, by reducing costs. There is speculation that the stock may experience another rally, which could trigger a short squeeze, due to the analysts positive earnings report. The stock price rose by as much as 13% in after-hours trading, but it is still significantly down from its highs earlier this year. The company has been undergoing a transformation with new leadership, a focus on e-commerce and digital gaming, and has raised billions of dollars through share sales to fund its transformation. The positive earnings report is a welcome sign for GameStop, which has been struggling with declining sales and increased competition from digital gaming platforms.

GME Ratings by Stock Target Advisor

GameStop Corp Stock Forecast

3 analysts have provided their GameStop Corp stock forecasts, predicting an average target price of USD 25.10 over the next 12 months. However, the average analyst rating for the company is Sell. Stock Target Advisor has conducted its own analysis of GameStop Corp’s stock and has a Bearish outlook, based on 2 positive signals and 7 negative signals. As of the last closing, GameStop Corp’s stock price was USD 17.65, showing a change of +4.38% over the past week, -14.57% over the past month, and -25.05% over the last year.

GME Ratings by Stock Target Advisor

Company Overview

GameStop Corp. is a specialty retailer that operates through e-commerce properties and various physical stores located in the US, Canada, Australia, and Europe. The company provides a range of entertainment products, including new and pre-owned gaming platforms, gaming accessories such as controllers, headsets, and virtual reality products, gaming software both new and pre-owned, in-game digital currency, downloadable content, and full-game downloads. Additionally, GameStop sells collectibles that are primarily licensed merchandise related to the gaming, television, and movie industries. GameStop Corp. was founded in 1996 and was formerly known as GSC Holdings Corp. The company is headquartered in Grapevine, Texas.

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