GAME Stock Plunges 11% With Probability of Further Decline

Gaming and esports stocks gained on an average of $2 yesterday. However, GameSquare Holdings (NASDAQ: GAME), a gaming focused firm, experienced a massive blow with the company shares losing over 11%. GAME stock closed at $3.11 with no activity in the pre-market hours. Both the indices, NASDAQ 100 and S&P 500, grew by almost 1%.

GAME Stock Gained 250% Between November and December 2022

The company revealed positive earnings reports recently, beating their estimated revenue by $370K (3.84%). Prior quarterly results by the company pushed GameSquare Holdings missed earnings per share (EPS) by large margins with the Q3 2022 report showing nearly (180%) surprise. GAME stock rose by almost 250% in the following month.

GameSquare is primarily focused on gaming and electronic sports (Esports). Esports sector was valued at $1 Billion in 2021. Currently, China is the biggest esports market globally. In January 2023, the company’s esports arm, Complexity Gaming, renewed their collaboration with a lager beer brand, Miller Lite.

Esports segment is growing rapidly with several gaming companies organizing massive international Esport events. Military-focused First Person Shooter (FPS) games including Call of Duty: Warzone and Warzone 2.0, Counter Strike: Global Offensive (CS:GO), Fortnite, PlayerUnknown’s BattleGrounds to name a few, are the most preferred games by the players.

GAME Stock Price Analysis

GAME stock price is making a head and shoulders pattern with a potential target appearing unfulfilling for the company. GAME share price has remained extremely volatile since the year’s beginning considering the value peaking to a high of $9.56 and a low near $3.

Moving averages convergence divergence (MACD) is currently hovering in the oversold zone with sellers dominance seems rising. TRIX has plunged way below the zero line making a further decline more likely. However, Connors RSI is in the oversold region, highlighting a potential gain in the coming days.

The Esports company has not shown any significant gains over the last five years, with GAME stock losing almost 90% value since its inception. GameSquare Holdings sits atop a market capitalization of $39.43 Million at the time of writing. Although GAME stock has shown negative momentum for the past few years, analysts at TradingView maintain a strong buy rating.

With the latest technologies including artificial intelligence (AI), metaverse, virtual reality (VR) and more coming into the market, the gaming sector is expected to provide massive gains to the companies in this space. Additionally, 5G, ultra-wide band fiber would assist these state-of-the-art tech to further scale at a global level.

Streaming, too, will play a vital role in the gaming sector, making it easier for gamers to play and participate in Esports tournaments. GAME stock has lost a large chunk of its market cap. However, if GameSquare Holdings emphasizes on aforementioned latest technological marvels, it may see a positive change in value.

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.

Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.