GameStop Corp’s GME Stock rallied 30.47% year-to-date and is brushing the sideways-moving EMA. With the trailer for the ‘Dumb Money’ movie out, can it climb back up? The movie is based on the infamous GameStop–Reddit stock scandal and with a stellar star cast, it is expected to garner wide interest and could pump the GME share price.
GameStop Corp. (GME Stock) – Where Does it Stands and Route Ahead
In January 2021, the GME share price surged by almost 1500% between January 13 to 27, 2021. During the COVID-19 pandemic, the share price kissed the bottom at $2 to $4 per share. A trader orchestrated a plan to buy as many GME stocks as possible and not sell them. They were creating a short-squeeze scenario and taking the share price to around $483.00.
This scandal rocked the market at the time. Recently a movie starring Paul Dano, Vincent D’Obofrio, Pete Davidson, America Ferrera, Seth Rogen, and others was announced. When a big-budget film on a high-value scandal is made, the interest surrounding the entity rises automatically. It is possible that the movie could lead to an increase in the value of GME stock.
At press time, GM stock is trading at $24.32 with a slight drop of 0.45%. its previous close and open were at $24.43 and $24.12, respectively. The 52-week change sees a decline of 28.05%. With an average volume of 4.94 million shares, the market cap stays strong at $7.412 billion.
Analysts placed a 1.00 rating for sell and predicted a price target of $6.20 with a downside of 74.5%. The trailing twelve-month (ttm) earnings per share are reported to be minus $0.67, while the quarterly change in the EPS value is an increase of 73.08% to negative $0.14.
The last earnings of GameStop Corp. (NYSE: GME) were released on June 7, 2023, where the revenue came to be $1.237 billion. It failed to beat the estimated value of $1.343 billion by 7.86%, thus resulting in a shortage of -$105.475 Million. The ttm revenue is said to be $5.79 billion.
Similarly, the ttm revenue per share is $19.01, and the year-over-year (YoY) quarterly revenue growth dropped by 10.30%. The company’s operating expenses fell by 31.00% to $312.00 million and the operating margin suffered by 2.98%.
Net income, however, swelled by 68.02% to -$50.50 Million, and the net profit margin jumped by 64.40% to negative 4.08. Total cash in hand at the end of the most recent quarter (mrq) was $1.31 billion, while the total debt in the same period equals $650.0 million.
GameStop Corp. (GME Stock) – Candle Exploration
Since December 2022, the GME share price has been trying to beat the crucial point of $28, but it could not sustain the break even if it managed to. Currently, the R1 at $27.90 acts as significant resistance. If the price surpasses this point in a strong rally and maintains its momentum, it has the potential to exceed R2 and surge further.
Right now, the price is brushing the 200-day EMA and could drop further. A fall below the demand zone seems unlikely. As the trailer dropped, the buzz surrounding the scandal would increase and might contribute to fueling the rally.
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/06/23/gamestop-movie-dumb-money-trailer-out-of-use-to-gme-stock/