GET DAILY SIGNALSInside GameStop's Wild, Odd Volatility
Trading shares in retailer, GameStop, has looked felt like...well...a video game. Shares of the major video game retailer have gone parabolic in what appears to be a perfect storm of small investor interest, short covering from major institutions, and enthusiasm driven on a Reddit chat forum. Approximately 175.5 million shares of GameStop traded hands on Monday, the second highest one-day total ever. You can't make this stuff up.
Entering the year, GameStop was one of the most shorted stocks in the marketplace, which perhaps set it up for even more speculative bets and trading on where shares would go. Small investors, urged along on Reddit and other chat forums, piled into GameStop, sending shares surging well over 100% on Monday morning, before giving it all back and surging higher before close. Truly insane. Trading was halted nine different times by the NYSE.
For the year, GameStop is still up huge, which has led money managers to unwind short bets and purchase shares to cover - driving upside even further.
Bottom line, in my view: steer clear of trying to get involved with predictions about where GameStop could head next. The story itself has drawn too much attention into the stock, pulling it far out-of-line with the company's actual fundamentals, in my view. I think it's ripe for some kind of reckoning that will cost many investors dearly.
Below, Tickeron's A.I.dvisor delivers insight on the gaming industry, which the A.I. thinks has a positive outlook.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
GME's RSI Oscillator recovers from overbought zone
The 10-day RSI Oscillator for GME moved out of overbought territory on October 16, 2026. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 27 instances where the indicator moved out of the overbought zone. In 24 of the 27 cases the stock moved lower in the days that followed. This puts the odds of a move down at 89%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 23, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on GME as a result. In 72 of 89 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 81%.
The Moving Average Convergence Divergence Histogram (MACD) for GME turned negative on October 20, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In 41 of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at 85%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 79%.
GME broke above its upper Bollinger Band on October 09, 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.
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
Following a +7.71% 3-day Advance, the price is estimated to grow further. Considering data from situations where GME advanced for three days, in 199 of 261 cases, the price rose further within the following month. The odds of a continued upward trend are 76%.
The Aroon Indicator entered an Uptrend today. In 91 of 129 cases where GME Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 71%.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 43 (best 1 - 100 worst), indicating steady price growth. GME’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 54 (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 PE Growth Rating for this company is 91 (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 Valuation Rating of 96 (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 (2.039) is normal, around the industry mean (2.438). P/E Ratio (12.535) is within average values for comparable stocks, (17.433). GME's Projected Growth (PEG Ratio) (3.420) is very high in comparison to the industry average of (1.159). Dividend Yield (0.015) settles around the average of (0.094) among similar stocks. GME's P/S Ratio (3.666) is slightly higher than the industry average of (1.057).
The Tickeron Profit vs. Risk Rating rating for this company is 100 (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 90, 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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