May 14, 2024
Hot Stocks 🔥

GameStop Is Up - Meme Stock Traders Celebrating | Nemo

Name of opportunity: 👀

GameStop Corp. 

All over the internet: 📱

Keith Gill or ‘Roaring Kitty’ posted on X yesterday on 13 May, his account having been inactive since 2021, when he was instrumental in meme stock and especially GameStop stock taking off. Although all he posted was a drawing of a man leaning forwards in a gaming chair, it kicked off discussion on Reddit and the trader social media platform StockTwits - and in turn drove up GameStop stock. 

While Gamestop has risen by 385.10% in the last month, much of that activity has taken place since yesterday. Gill’s cryptic online activity has set meme stock traders' imaginations on fire. 

How hot is this investment opportunity? 🔥

While GameStop stock has risen in value enormously, it’s not predicted to last. Analysts say it will fall by 87.99% in the next 12 months. 

Analysts are recommending that investors ‘Sell’, because the target price of £5.67 is so much lower than the stock’s current price, which has been artificially driven up, not relating to solid factors like the company’s financial performance. Anyone who holds onto the stock is liable to make a loss, depending on how fast it falls. It has already begun to drop, so analysts advise that at this point investors might need to start thinking about offloading that stock - and not buying any more. 

Analysts also find it extremely unlikely that GameStop stock and fellow meme stock AMC will reach the heights they did in 2021. The market conditions are different - one major difference being we are no longer in lockdown, with US citizens keen to trade and with pandemic stimulus checks to spend. In addition, the hedge funds who were initially selling GameStop (and AMC) stock short in 2021 and that subsequently lost money will not be putting themselves in this position again. 

2021’s most dramatic stock?:

The incredible rise of GameStop stock was the topic of a major 2023 movie, Dumb Money. The stock was being sold short by hedge funds and investors, and then driven up in value by meme stock retail investors. Demand increased compared to supply, causing a short squeeze. 

GameStop is the world’s largest video game retailer, having been founded in Texas in 1984 as Babbage’s. It rebranded to GameStop in 1999. In the 2010s, it started to struggle financially more than before, due to a number of factors such as a decline in consumer interest in physical game media (and a corresponding increase in digital game downloads direct from vendors like Xbox Live and Steam). 

Which neme?: 🔍

‘Meme Stocks’, ‘Top Gainers Today’. ‘What Analysts Say’, ‘Gaming’, and ‘Stocks On The Move’. 

Han Tan

Han Tan is a seasoned financial journalist and news presenter renowned for his expertise in global markets. With a career highlighted by interviews with prominent figures and recognition from major media outlets like CNN and Reuters, he delivers insightful analysis on market news and macroeconomic trends to clients and international audiences. Han's sharp commentary on currencies, stocks, and commodities is familiar to viewers of Bloomberg TV Malaysia, BFM 89.9, and NTV7, cementing his sterling reputation in the industry.