GameStop Stock Slides after Bull Trend
GameStop Stock may be high compared to its previous value over the last few days, but it is worth investing in right now?
Quick overview
- GameStop (GME) stock rose 3.39% on Monday due to favorable market conditions but is currently down 0.70% in early Tuesday trading.
- Over the past five trading sessions, GME's value has increased by 5.30%, outperforming the Nasdaq index's 2.79% rise.
- Despite recent gains, GameStop remains a risky investment due to its history of volatility and reliance on social media hype.
- Investors should approach GME with caution as it shows short-term bullish trends but is recovering from significant losses.
GameStop (GME) stock rose 3.39% through Monday as favorable market conditions helped this unpredictable asset to grow. As premarket trading opens for Tuesday, the stock is falling.
GME stock is down 0.70% for the day so far as early morning trading commences, but it has still retained much of its recent gains. It was not just on Monday that this stock climbed, gaining more than 3%. It has been climbing for days thanks to several factors that have helped much of the stock market to regain recent highs.
Both Microsoft and Nvidia have posted record highs over the last few days, and the Nasdaq Composite and S&P 500 are both at their peaks as well. This has created a positive environment for GameStop stock to do well.
Over the last five trading sessions, GameStop’s value has risen by 5.30%. That is markedly better than the market average, as the Nasdaq index has only risen by 2.79% in that same period. Is GameStop worth investing in right now or is it a novelty stock that will soon depreciate?
GameStop- Invest, Hold, or Sell?
This is a stock that has fluctuated wildly between extreme highs and lows over the past few years, becoming one of the most unreliable stocks, particularly because many of its high points have been the result of social media and message board pumping rather than the result of a real value increase. This makes it a risky stock to invest in, despite the company being the largest retailer of video games in the world.
In recent years, GameStop has improved their public image and improved their financial situation, moving from being on the verge of bankruptcy to become relatively profitable.
However, over the last month, this stock has dropped significantly, falling from $30.34 per share to $22.14. The stock price has been on a steady increase since then, but it is far from making back its June losses. For those investors who bought the stock when it was valued higher, it would not make much sense to sell at this point. The stock has proven it can surge unexpectedly periodically. It could be weeks or months before it does so again, though.
GameStop is not a solid long-term stock, but it can prove very profitable over the short term because of its quick bullish trends. It is once again bullish, but is coming out of a significant drop, so investors need to treat it with extreme caution. Since we are seeing it already start to retreat in early morning trading, GME may be done with its short bull run already.
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