GME is short for “Game Stop Stock.” The stock ticker for an American retailer of video games is GME Stock . It became well-known in January 2021 when it was designated as the WallStreetBets subreddit’s “MemeStock” (WSB.)
Due to the transition of video game sales to online storefronts and GameStop’s unsuccessful attempts to enter the smartphone retail market, the firm (and its stocks) experienced a slump in the middle and late 2010s. Hedge funds took advantage of this collapse by overborrowing and overselling GME stock, which resulted in a short. The company was 140 percent unlawfully shorted, according to a user with the moniker of DeepFuckingValue, who then posted his “bets” on WSB.
Is GameStop stock undervalued or overvalued?
It is extremely challenging to value GameStop stock, and each indicator must be seen in the context of GameStop’s total performance. However, some important metrics are frequently used by analysts to estimate a stock’s value.
How to Buy GME Stock?
Early in 2021, the Texas-based video game store GameStop took over the financial news when the buying frenzy caused its stock price to soar. The New York Stock Exchange’s GameStop (GME) stock has a history of extreme volatility. The stock rose to $483 in the first month of 2021 from its opening price of just $19 a share. A short squeeze that was developed on the r/wallstreetbets Reddit thread spurred the activity. Consider working with a financial advisor to establish a comprehensive investment plan if you were unable to purchase shares during the initial GME rush and are considering doing so now.
How to Buy GME Stock With a Brokerage Account
Through a broker, any investor can purchase GameStop shares. Keep in mind that the GME ticker is used to trade the stock on the New York Stock Exchange. Before you begin trading, you must open a brokerage account if you don’t already have one.
Decide how many shares of GME stock you wish to buy and what price you feel comfortable paying once you establish an account. You can use a market order or a limit order when you’re ready to place an order. With the former, you can buy shares at its current market value.
Can you still buy GME stock?
The fact that GME is currently listed on the New York Stock Exchange means that there are dozens of brokers offering trading platforms and online accounts, and every broker based in the United States will let you buy and sell GameStop stock.
Using a financial advisor to purchase GME stock
You are not required to purchase and sell stocks directly. A financial advisor can carry out transactions on your behalf and give knowledgeable recommendations beyond just buying and selling GME stock. The significant volatility of GME in 2021 attracted a lot of media attention. You can incorporate your shares into a diversified portfolio that lowers risk with the assistance of a financial expert, who can also advise you on the best times to buy and sell GME stock.
An Academic Look at GME
GME is categorised as an initialism abbreviation because it is spoken with each letter separately (i.e., “Jee Em Ee”). Initialisms vary from acronyms in that they are not uttered as words.
Is GME a buy or sell?
Given that the share price is above its exponential moving averages of 5, 20, and 50 days, the present trend is very bullish, and GME is under mild buying pressure.
GameStop’s Stock Split and What It Means
The stock split shouldn’t have a significant effect on GameStop’s market value on its own. Share prices are modified to reflect the change in the number of shares that are now available for purchase by investors after splits, which only directly alter the total number of a company’s shares.
Benefits And Drawbacks Of Purchasing GameStop Stock(GME)
The share price of GameStop Corp. has drastically declined from its highs, but it is still significantly higher than it was before the rise that was sparked by retail investors.
The company’s new efforts and cash-rich balance sheet could benefit the stock.
However, there is a great deal of uncertainty around the reversal, and the climate of rising interest rates is producing a correction in all risky assets.
Key Metrics for GME Stock
Due to the industry’s transition to e-commerce and the pandemic, GME’s revenue had been falling even before the disease affected its operations. The revenue of GameStop Corp. was $8.5 billion in FY2017, but it will only be $5 billion in FY2020. In FY2021, GME’s revenue increased, although the rise was attributable to the relaxation of lockdown limitations and the company’s growing popularity among retail investors, who raised GME’s revenues by buying its products.
Is GME Buy, Sell or Hold?
The management’s e-commerce plan won’t likely acquire much traction until then, thus GME’s revenues should continue to be under pressure. The majority of GME’s revenue comes from its offline company; management is working to increase its online presence, but there is fierce rivalry in this market, making it difficult for GME to compete. GME’s popularity among retail investors led to an increase in income in 2021, but the trend is ebbing with fewer people visiting the GME website.
I/we do not own any stock in, or have any options on, any of the aforementioned firms, and we do not have any immediate plans to start doing so. This article was written by me and it reflects my personal views. There is no payment coming to me for it (other than from Seeking Alpha). I have no commercial ties to any of the referenced companies or their stocks.