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The Stock of Gamestop Continues to Rise, on Pace for a 4 Month Winning Streak

November 11, 2024
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GameStop Corp.’s stock saw an early boost on Monday, with the video game retailer and famed "meme stock" extending its recent upward trajectory. Shares rose 2.7% in premarket trading, putting GameStop on course to reach a four-month high at the opening bell. This would mark the stock’s fifth consecutive day of gains, making it the longest winning streak since a seven-day run that ended on July 16, as reported by Dow Jones Market Data. On Friday, GameStop’s stock closed with a 6.1% increase, climbing a total of 11.4% over the previous four sessions.

Notably, GameStop hasn’t released any new press updates since October 15, when it announced a collaboration with Collectors, a collectibles company known for its professional sports authentication services. Additionally, the company hasn’t filed any updates with the U.S. Securities and Exchange Commission (SEC) since an amended quarterly filing on October 25. Despite this lack of recent news, the stock has continued to attract investor interest.

Last week, GameStop’s CEO, Ryan Cohen, expressed support for former president Donald Trump’s election win through a post on X, formerly known as Twitter. Following the election, Cohen tweeted, “God bless America!” in apparent support of the outcome. Cohen’s support for Trump goes back several months—on July 13, he publicly endorsed Trump’s candidacy, shortly after an assassination attempt on the former president in Butler, Pennsylvania. His backing of Trump’s bid has been compared to that of Elon Musk, CEO of Tesla Inc., who has also shown support for Trump.

GameStop’s stock has experienced a series of notable events this year. In May, shares saw a significant boost following the return of well-known trader Keith Gill, known online as “Roaring Kitty,” to social media. Gill, who played a key role in the 2021 meme stock surge, resumed his support for GameStop by increasing his position in the company. His activity sparked renewed interest in GameStop and helped drive its stock upward. Gill’s reappearance on social media, coupled with his endorsement of GameStop CEO Cohen during his first livestream since 2021, added further momentum to the stock’s performance.

GameStop’s most recent financial results, announced in September, also stirred interest among investors. Despite a year-over-year drop in sales of over 30%, GameStop reported an unexpected profit in the second quarter. Additionally, the company revealed plans for an at-the-market stock offering of up to 20 million shares, further highlighting its efforts to strengthen its financial position. This unexpected profitability and fundraising effort were notable, as they signaled a potential turning point for the company’s fiscal health.

GameStop’s year-to-date performance has been impressive. As of Friday’s close, the stock was up 41.9%, significantly outpacing the S&P 500 index’s 25.7% gain over the same period. This outperformance highlights GameStop’s continued appeal among retail investors and its ability to weather market fluctuations.

Amid these events, analysts have been weighing in on GameStop’s strategy and its stock trajectory. Some experts believe the company could benefit from tactics aimed at boosting operational efficiency and capitalizing on its unique market position as a leader in video game retail and collectibles. For investors, GameStop’s blend of meme stock appeal and recent financial developments has created a dynamic investment narrative that has kept it at the forefront of retail trading interest.

In summary, GameStop’s recent rally reflects a mix of investor enthusiasm for its CEO’s high-profile endorsements, renewed interest from influential figures like Keith Gill, and improved financial performance. The stock’s surge has also underscored its resilience in the face of broader market trends. While GameStop’s future remains uncertain amid an evolving retail landscape, its current trajectory suggests continued interest from investors drawn to the potential rewards of the company’s ongoing turnaround efforts.

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Eric Ng
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Eric Ng
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John Liu
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Editorial Board
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Bryan Curtis
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Adan Harris
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Cathy Hills
Associate Editor

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