GameStop stock price is ripe for a 65% return
GameStop’s share price has declined over the past few weeks as investors focus on the gaming industry’s continued performance. above this year’s low. It has a market capitalization of over $12 billion, making it one of the largest retailers in the country.
The gaming industry is worried
GameStop is a major retailer that sells video games and consoles. The company’s first-quarter net sales jumped 8% to $1.4 billion. However, revenue was slightly lower than the $1.3 billion it made in 2021. Its general and administrative expenses rose 32.8% to $452 million, while its net loss reached $157.9 million. .
GameStop had about $1.04 billion in cash, about $340 million more than the previous quarter. Additionally, the company had an inventory of approximately $917.6 million. GGameStop’s revenue has grown from $5 billion in 2020 to over $6 billion in 2021.
GameStop stock price has struggled in recent days as concerns over the gaming industry continue. Additionally, results from top companies in the industry like Activision Blizzard, Take-Two Interactive, and Nvidia all showed the industry is slowing down. Therefore, this could also result in weak performance of GME.
GameStop’s stock price is also reacting to the performance of the NFT industry. The company has partnered with Immutable X and Loopring to create its fledgling NFT marketplace. However, it is still unclear whether the market will succeed or not.
GameStop Stock Price Predictions
The daily chart shows that GME’s stock price has declined over the past few days. It has risen from a low of $19.05 on March 14 to around $40. Along the way, stocks edged above the 25-day moving average, while the MACD broke above neutral. It has also formed what looks like an inverted head and shoulders pattern.
As a result, GameStop stock price will likely continue to rise as bulls target the next key resistance point at $62.61, which is around 65% above the current level. A drop below the support point at $30 will invalidate the bullish view.