Inside 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.
GME's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for GME turned positive on March 18, 2025. Looking at past instances where GME's MACD turned positive, the stock continued to rise in of 48 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 26 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 68 cases where GME's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that 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 265 cases, the price rose further within the following month. The odds of a continued upward trend are .
GME may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on February 25, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on GME as a result. In of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
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 .
The Aroon Indicator for GME entered a downward trend on March 18, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Price Growth Rating for this company is (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 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 77, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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 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 (2.740) is normal, around the industry mean (12.561). GME's P/E Ratio (599.500) is considerably higher than the industry average of (36.882). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.650). GME has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.034). P/S Ratio (0.694) is also within normal values, averaging (19.514).
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.
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Fundamental Analysis Ratings
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General Information
a retaier of video game products and PC entertainment software
Industry SpecialtyStores