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The Key Takeaways
- After cryptic activity on social media, the trading in the game and toys retailer GameStop ended the week with a bang.
- The company plans to release its quarterly financial results on Tuesday.
- The meme-stock standout isn't widely covered on Wall Street. Investors have driven the stock higher since last quarter’s results and this year.
Next week, GameStop will release its next quarter’s results. As is usually the case, GameStop’s quarterly results aren’t the most important thing.
GameStop (GME), the stock of GameStop, was relatively quiet on Friday. On a much lower volume, the shares ended higher than they had a day prior when Keith, meme-stock guru sent a mysterious tweet. “Roaring Kitty” Gill inspired investors to invest in the company.
On Thursday, traders sent the share up as much as 14% intraday with heavy volumes. They were recalling the wild trades Gill had inspired on social media earlier in the year.
Investing attention may once more have been focused on the financial results expected for Tuesday. AMC Entertainment shares finished down around 9% on the day.
Wall Street hasn’t covered GameStop much, an online retailer of video games and collectibles that is facing an uphill struggle amid the industrywide move to digital commerce. Visible Alpha tracks only Wedbush analyst Michael Pachter, who in his Friday note reiterated that he believes the company is on a path to success. “underperform” The business is rated as being worth less than $10 if the target price is set at that level.
“The company’s planned return to growth faces insurmountable barriers,” He wrote.
Investors are generally continuing to see things differently. Stock closed near $29 on Friday and has risen more than 60% in the past year. However, it is still off its 2024 peak. Occasional business updates—since its second-quarter earnings release in September, GameStop has added a board member, announced a trading-card partnership, and raised cash—have helped sustain interest, with the shares rising over that time.
This past week's flurry of action, however, is yet another reminder that much of the action around GameStop stock is driven by external factors.
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