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.
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 sees MACD Histogram crosses below signal line
GME saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on August 03, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 48 instances where the indicator turned negative. In of the 48 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on July 16, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on GME as a result. In of 90 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
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.
The 10-day moving average for GME crossed bearishly below the 50-day moving average on July 23, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 20 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following 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 August 07, 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.
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GME advanced for three days, in of 257 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.
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 (1.471) is normal, around the industry mean (5.496). P/E Ratio (14.299) is within average values for comparable stocks, (36.764). GME's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.565). GME has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.028). P/S Ratio (2.939) is also within normal values, averaging (1.126).
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 88, 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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