GameStop Stock Price: Prices on Declining Streak

GME stock encountered bear pressure in the recent sessions revealing the downtrend.
The price action implies that recent shorts build-up clogs the path upsides.

GameStop Corp. (NYSE: GME) released its Q3 2022 report last week, which remained below expectations. Although it was not surprising, as it was the sixth consecutive loss in a row. Recently the stock price witnessed negative sentiment, which impacted the price and led to a dip of 28%. Moreover, the stock had been through selling pressure in the last two months.

As the retail investors eagerly await the calendar earnings reports, GME stock was awarded a lot by spoiling it. A huge net income loss of $94.7 million was recorded in Q3 2022.

GME charts reflects Longs Unwinding

On a daily time frame, GME stock witnesses a bearish trend. However, the stock price made its corrective moves in the past months. The price action related that it was trading inside the rectangular zone. And as soon as prices dropped below the zone, it confronted sharp selling. It indicates that the bears are winning over the bulls and tightening their grip.

As per the fib retracement, the price was heading to its support range of $18-19, below the key support $16. Besides, if the price pulls back, it will soon face a resistance mark of $23.

What went negative for the stock price?

In an interview, Sam Bankman Fried commented on the issue of tokenized shares of GME. FTX agreed that GME backed its 10 million digital tokens. Recently, the stock has faced negative impacts due to the FTX collapse. On top of that the earnings were also not on par expectations.

The net sales remained $1.186 billion in Q3; earlier it was $1.297 billion. The EBITDA margin was at 5.67%, which dropped by 2%. At the same time, the net profit margin also reduced by 2% and fell to 7.98%. The revenue was reported at $1.19 billion in contrast to the expectation of $1.34 billion.

With a market cap of $6.34 billion, the TTM EPS was at 1.62, which was -404% (YoY).

The PE multiple of the company also has a lower number of 12.62.

Conclusion:

GME Stock is now in a bearish trend with no hope of recovery from now. The news and views of the holders and new investors are in FOMO (fear of missing out), which declines the stock to the toe. The stock starts its journey of 2022 at $22, and surprisingly, instead of showing growth, the price at the end of the year trades at $20.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they 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