It’s worth noting that GME stock is up by a whopping 1078.34% Year-to-Date and up by 26% in the last week alone. However, despite impressive GME performance, stock research platform Tipranks hints that the bullish sentiments around the stock might fade away. The Wall Street analysts predict that GameStop stock’s price in the next 12 months will fluctuate between $10 – $175, with an average price of $55.80. At the time of writing, out of 6 analysts, 0 analysts suggest buying the stock, 2 to hold, and 4 having a sell rating for GME. This suggests that despite there is no united consensus amongst the analysts on the stock price outlook, all of them forecast the slump for GameStop in the next 12 months. However, the shares still hold pace over the 50-day simple moving average (SMA). If the price moves significantly below the 50-period moving average, it is commonly interpreted as a trend change to the downside. This indicates the investors and traders may have misjudged retail investors’ ability to keep their positions despite the enormous volatility. All eyes from retail investors are geared towards the stock’s popularity on social media platforms instead of the fundamentals, with the stock trading at more than 3 x price-to-sales. From this perspective, speculative retail traders should be keen observers of the likes of Reddit, TikTok, and Twitter instead of the company’s financials which will have little or no impact on the near-term trading of the stock.
GameStop enters NFT market
Recently, GameStop has benefited from the news about the business’s entry into the non-fungible token (NFT) space. The company has launched an NFT themed website nft.gamestop.com with a platform based on Ethereum (ETH) network. GameStop’s foray into the blockchain space, specifically NFTs, has been another catalyst for retail investors who have not rushed to abandon their positions, as the volume of trading GameStop shares has dropped in recent months. In all likelihood, if the GameStop shares become unfashionable on the online platforms, the fundamentals will kick in, which could develop a bearish trend.
