Why Is GameStop (GME) Stock Rocketing Higher Today

What Happened?

Shares of video game retailer GameStop (NYSE:GME) jumped 8.1% in the afternoon session after CEO Ryan Cohen shared a photo with Michael Saylor, co-founder and chairman of MicroStrategy, the largest corporate holder of Bitcoin. The post has sparked speculation that GameStop may be planning a move into the crypto space. Such moves often resonate with its core audience of retail investors and traders.

Is now the time to buy GameStop? Access our full analysis report here, it’s free.

What The Market Is Telling Us

GameStop’s shares are extremely volatile and have had 54 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 9 months ago when the stock gained 119% as meme stocks soared (AMC Entertainment (NYSE:AMC) +14%, Newegg Commerce (NASDAQ:NEGG) +14%, Beyond (NYSE:BYON) +14%).

Gamestop's stock rally also coincided with the return of the famous Wall Street Bets (Reddit stock trading forum) trader Keith Gill (known online as Roaring Kitty) to Twitter (also known as X.com) after three years. The moves likely point to the growing interest of retail investors in the stock market.

GameStop is down 12.9% since the beginning of the year, and at $26.69 per share, it is trading 45.3% below its 52-week high of $48.75 from May 2024. Investors who bought $1,000 worth of GameStop’s shares 5 years ago would now be looking at an investment worth $27,096.

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.

View Comments