Is This Game On for GameStop Stock?
It’s been 16 months since GameStop Corp. (NYSE: GME) blasted into the stratosphere fueled by extreme trading euphoria. Since its abrupt return to Earth,
By MarketBeat Staff May 31, 2022
This story originally appeared on MarketBeat
It's been 16 months since GameStop Corp. (NYSE: GME) blasted into the stratosphere fueled by extreme trading euphoria.
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Since its abrupt return to Earth, there have been a few minor ignitions but nothing of the epic variety. Still, loyal meme stock enthusiasts have stayed at the ready awaiting the next launch.
Signs of a potential sequel are back.
Buoyed by a sorely needed market rebound, GameStop's 43% surge last week made it one of the best performers among U.S. stocks. Better yet, the video game retailer turned mixed media bag regained its 50-day in strong volume.
While this is often a bullish move that precludes an extended rally, with GameStop we've seen this act before. In March 2022, a 10-day rally that brought the stock to within pennies of $200 was greeted by a short seller attack and market weakness that swiftly dragged it back under $100.
Could this time really be different?
Why Did GameStop Stock Go Up?
On May 23rd, GameStop launched a new digital wallet for cryptocurrencies and non-fungible tokens (NFTs). The Ethereum-based wallet will let gamers and collectors store and transact in these two assets straight from a web browser.
The launch is part of GameStop's broader ambitions in the NFT space as it continues to diversify away from its traditional video game retail business. In the coming weeks, the company plans to roll out its own NFT marketplace in a bid to cash in on a hot alternative investment area and stimulate growth. Last month, Technavio issued a report that estimated the global digital artwork market will grow at a 35% rate over the next five years.
GameStop's wallet news was far from earth-shattering. It has been transparent about its NFT plans and a dive into crypto. In fact, the stock barely budged on the news.
The news did, however, stoke the fire in that it got social media buzzing again about the wildly popular meme play. It wasn't long after that GameStop was the top trending name on both Reddit's Wall Street Bets and Stocktwits.
When Does GameStop Report Earnings?
What also helped get the chatter mill churning was management's announcement of the first quarter earnings date, which came the same day as the GameStop wallet release. The company is slated to report Q1 performance after the market closes on June 1st. This was a bit earlier than anticipated, which by itself seemedQq to excite the retail massesTank' Vet and Her Game-Changing Invention Are Revolutionizing Personal Safety
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