GameStop Stuck at Current Level as Investors Hunt Bottom
GameStop shares have put investors through the wringer of late, with the stock having shaved off more than one-third of its value since early June. Trading volume is lighter than usual, suggesting that the downturn could have something to do with the summer doldrums.
Nonetheless, retail investors are itching for any sign that their favorite meme stock may have finally hit a bottom and is ready for its next upward move.
One Reddit member has posted a technical analysis thread on the forum in which they explain how the technical stars could be aligning for a turnaround in GME. The thread has received more than 500 comments. Investors are responding to the fact that GameStop has “formed a candle combo off of support lines” that is reminiscent of previous set-ups that preceded rallies, according to the thread.
Wall Street Weighs In
The last place that retail investors are looking to for direction is analyst firms. Nonetheless, Wall Street continues to weigh in on the meme stock craze. Most recently, Ascendiant Capital Markets analyst Edward Woo more than doubled his price target on GameStop’s stock.
The analyst’s 12-month target went from USD 10 to USD 25, which for all intents and purposes seems bullish. Considering that GameStop shares are trading at USD 190, however, the upward revision did little to lift the stock.
Super Mario Stays Relevant
The gaming industry has been thrust in the spotlight after an unopened copy of a Super Mario 64 game cartridge was sold at an auction for more than USD 1.5 million, setting a new record. While Nintendo is behind Super Mario, the sale was a boon for all of gaming, including GameStop, which is moving away from nostalgia and into the digital age.
Happy 40th to Donkey Kong! Graphics updates or not, you don't look a day over 21. Here's to 40 more! pic.twitter.com/tJ03Xc917r
— GameStop (@GameStop) July 9, 2021
The Super Mario 64 cartridge dates back to 1996. That was four years before GameStop as the world knows the brand today was born. While the gaming retailer’s history began in the 1980s, it went through an evolution of brands before becoming today’s GameStop. Incidentally, the company is on a new journey to transition from a brick-and-mortar to a digital retailer.
Despite the excitement around the game, Super Mario did little to lift the mood of gaming investors.
This article was originally posted on FX Empire
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