GameStop (GME, $10.03) losing ground to cloud gaming
Shares of GameStop fell sharply on Wednesday after the company reported an estimate missing fourth quarter report and also issued a lower guidance for forthcoming year. In fact, it is now safe to say that 2018 was the worst year for the company who is now struggling to keep its physical stores relevant in the age of cloud gaming.
In line with its poor performance, analysts’ price target now ranges between $5 - $12, as more and more gaming moves to streaming and other online models has made the need of physical stores redundant.
Analysts cite a variety of reasons for the company’s sales decline. The major problem seems to be its shift to the market place that had some negative implications like declining hardware sales; continued declines in the usually profitable pre-owned games category; and too-slow growth in the collectibles segment.
The company’s expertise is also in question now: used games, and whether it remains relevant in a changing video gaming and distribution practices. Pre-owned game revenue dropped 21.3% on a y-o-y basis.
Overall, GameStop is now in a spot to justify its own existence.
GME's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for GME turned positive on August 26, 2026. Looking at past instances where GME's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where GME's RSI Indicator exited the oversold zone, of 32 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on September 01, 2026. You may want to consider a long position or call options on GME as a result. In of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GME advanced for three days, in of 258 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
GME moved below its 50-day moving average on July 31, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GME declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
GME broke above its upper Bollinger Band on September 01, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for GME entered a downward trend on August 31, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. GME’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.477) is normal, around the industry mean (4.843). P/E Ratio (14.351) is within average values for comparable stocks, (36.960). GME's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.394). GME has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.032). P/S Ratio (2.951) is also within normal values, averaging (1.083).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. GME’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock worse than average.
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General Information
a retaier of video game products and PC entertainment software
Industry SpecialtyStores
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