Gamestop (GME) Stock Price and Forecast: GME shares rally as Ryan Cohen to lead digital strategy

GME shares rally sharply on Monday, up 30%.
GME investors see Ryan Cohen leading its digital revolution.
GME still the hottest retail stock for wallstreetbetts.

Ivan Brian FXStreet

Gamestop (GME) hasn't gone away and as if to prove it is the king of retail stocks it shows back up on traders' screens for a 30% gain and counting on Monday.

Gamestop news

Now just in case, you have arrived at the stock market from a different planet, let's recap.

Gamestop is/was a struggling online video game retailer with shops located all around the world selling yes you guessed it, video games. Well as we all know retail is a struggling space as online continues to take over and this has been a trend for Gamestop too. As a result, Gamestop was heavily shorted by hedge funds as they bet that the price would decline further.

Gamestop's share price had been languishing below $10 for a considerable time and hit $2.57 by early April 2020 as the global pandemic raged. From here Gamestop staged an impressive recovery, in line with global stocks. GME shares just reached $20 before 2020 was done.

From here it gets interesting though as the power of retail suddenly became a force that could not be ignored by Wall Street. /wallstreetbets is a Reddit community for stockmarket talk and Gamestop started to trend heavily on the site early in 2021. Gamestop ran and ran and eventually exploded as talk of squeezing hedge fund short positions fizzed and exploded into mainstream consciousness. Gamestop shares traded up to nearly $500.

The Robinhood saga then tempered things with multiple brokers placing restrictions on purchases of Gamestop and other retail meme stocks. Gamestop shares collapsed down to below $100 in a matter of days.

Since then the shares have consolidated around the $60-80 range before exploding again last week to break up to $184.

Now again we have concrete news pushing the shares higher and reinvigorating retail traders. Gamestop is up 30% at $181 after Ryan Cohen is to lead Gamestop's transformation into the e-commerce space.

The author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

This article is for information purposes only. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice. It is important to perform your own research before making any investment and take independent advice from a registered investment advisor.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to accuracy, completeness, or the suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. The author will not be held responsible for information that is found at the end of links posted on this page.

Errors and omissions excepted.

Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

GBP/USD: Daily gains remain capped by 1.3650

GBP/USD leaves behind Monday’s pessimism and advances marginally on Tuesday. Cable’s humble gains, however, appear to have met quite a decent resistance in the 1.3650 zone for now, in a context of a slight selling pressure hovering around the Greenback.

EUR/USD struggles to regain pace; gyrates around 1.1670

EUR/USD clinches humble gains around 1.1670 following Tuesday’s close on Wall Street. Indeed, marginal losses in the US Dollar encourages spot to set aside two dauly pullbacks in a row and maintain the 1.1700 barrier on the cross-hairs for now. Moving forward, US inflation tracked by the PCE and another revision of Q2 GDP data should keep investors entertained on Wednesday.

Gold: Buyers still hold the grip

Gold navigates the middle of its daily range near $4,650 per troy ounce on Tuesday. The lack of clear direction in the yellow metal comes on the back of the widespread cautious tone among market participants, a mildly offered stance in the US Dollar and a marked decline in US Treasury yields across the curve.

Australia CPI expected to show inflation easing in July

The Australian Bureau of Statistics (ABS) will publish the July Consumer Price Index (CPI) on Wednesday at 01:30 GMT. The report is expected to show that inflation rose 3.2% from a year earlier, easing from the 3.8% posted in June. The monthly CPI, however, is forecast at 0.8% following the -0.1% print from the previous month.

Canada hits US goods with tariffs; The rate market sees a problem

On September 8, Canada begins charging its own importers 15%, 25% and 50% on roughly 700 lines of American goods. The measure is billed as dollar for dollar, and on the arithmetic of covered trade it is. What it is not is a tax on the United States.