GameStop (GME) Stock Price and News: The game is over and it is not MVP!


  • Gamestop continues its inevitable ride back to where it all began.
  • Retail buyers late to the party are suffering heavy losses.
  • Volumes slowly returning to more normal levels.

Update 2, Monday, February 8: Gamestop (GME) shares continued to move lower as Monday progressed. Shares in GME are down another 7% at $59. This despite the broader market setting yet another record high as investors pile into stocks. AMC, another Reddit meme stock also continues to struggle. AMC shares are down 12% on Monday. The game is over as retail traders, late to the prty, suffer heavy losses in Gamestop and other related stocks.

Update Monday, February 8: GameStop (NYSE: GME) gained another 8% in the post-market trading, finally settling Friday at $68.98. The meme stock, however, lost nearly 78% of its value on a weekly basis. The bulls were rescued towards Friday’s closing after Robinhood Markets Inc. removed limits on all stock trades, including GameStop. The optimism over US President Joe Biden’s $1.9 trillion stimulus package sent the Wall Street indices to record highs, which also helped stage a comeback in GME shares but the recovery remained capped below the $100 mark. Follow all stock updates

Update: GameStop (GME) has closed the first week of February at $63.77, after gaining 19.2% Friday, but ended the overall trend is to the downside. The late upswing seems to be the result of Robinhood's removal of trading limits and also an inflow of bargain-seekers. Broader markets have put the frenetic action behind them and rallied in hopes of new stimulus from President Joe Biden and Congress. The inverse correlation between "meme-stock" and the S&P 500 index has evaporated. Follow all stock updates

Update 2 Friday, February 5: GameStop shares continued their usual wild ride on Friday. Early in the session, GME shares topped out at $95 as news that Robinhood lifted all trading restrictions helped. GME shares surged from the open of $54 to trade as high as $95. Failure to break the psychological $100 level and renewed short interest brought GME crashing back down. GME is currently trading at $58 at the time of writing, up 9% for the day.

Update: GameStop (GME) has kicked off Friday's trading with an upswing of some 20% to the upside as Robinhood's removal of restrictions is prompting some bargain-seekers to jump on the stock, as seen in premarket trading. The Grapevine, Texas-based company is valued at under $4 billion, which makes it an interesting option for those seeking value beyond short squeezes. Hedge funds – some of whom also bought shares – could now be less active. It is essential to note that markets are calmer on Friday after a mixed jobs report, perhaps allowing for gradual increases.

Update: GameStop Corp. (NYSE: GME) has been exchanging hands at around $60 in Friday's pre-market trading, an increase of some 12% over Thursday's closing price of $53.50. The video gaming company's stock – which became the poster child of the "Reddit stocks – tumbled by 42% on Thursday, adding to previous losses earlier in the week. However, there may be positive news for those who have been holding on – Robinhood removed limitations to buying GME and AMC stocks, enabling fresh money to flow in. Moreover, financial regulators told Treasury Secretary Janet Yellen that the system is stable, shrugging off concerns that floated earlier. GameSpot may attract new buyers – but that depends on bargain-seekers seeing the fundamental value in its shares. 

Update: After closing below $100 on Wednesday, GameStop (NYSE: GME) shares started the trading day relatively quiet on Thursday but came under heavy selling pressure as investors await headlines coming out of Treasury Secretary Janet Yellen's meeting with regulators. As of writing, GME shares were trading at $65, losing nearly 30% on a daily basis.

In an interview with ABC earlier in the day, Yellen said that she will discuss with regulators whether or not the recent market action driven by retail traders warrant further action. "We need to understand deeply what happened before we go to action but certainly we're looking carefully at these events," she added.

Meanwhile, broader markets are trading higher as markets remain optimistic about additional fiscal stimulus in the US. The S&P 500 Index is currently up 0.72% at 3,857, a touching distance away from the record high it set at $3,870 last week. 

GameStop (NYSE: GME) is for a second consecutive day of moderate gains – an increase of roughly 3% to $96 after closing Monday's trade up by 2.68% at $92.41. While moves of several percentage points may seem like handsome profits for seasoned traders, they are far from what the videogame stock has been experiencing in recent weeks. One of the reasons for the increase, as described below, is Robinhood's relaxation of its limits related to GME. Will the online platform be able to cub trading for much longer? Treasury Secretay Janet Yellen is set to meet financial services regulators later on Thursday, and any potential unleashing of restrictions could trigger higher volatility. 

In GameStop Corp. (NYSE: GME), the price action is now generally muted as all the buyers have cashed in and the market takes a breather.

However, that is not to say that there may not be a resurgence in the retail sector seeking to target funds that may well have taken the courage to short the stock once again on the bearish fundamentals that had seen the stock in steady decline since 2014 tops of $57 a share.

Social investing is here to stay

In a new and powerful commercial trend driven by Millennials and Gen Zers, the retail sector has proven that it can take on the 'big boys'.

The news will have spread to attract new amateurs into the space seeking to make an easy buck as those out of work seek alternative ways to make money from home. This may mean the next round of buyers could be even greater, for the fear of missing out, (FOMO).

However, whether Gamestop will be their best choice is yet to be known, and the social media space will perhaps be the giveaway on what will be targetted next. 

Meanwhile, from a fundamental basis, GameStop Corp today announced that it has appointed Matt Francis to the newly-created role of Chief Technology Officer who will start on February 15, 2021. Most recently, he was an Engineering Leader at Amazon Web Services. 

Additionally, two other executives have been hired:

  • Kelli Durkin, Senior Vice President of Customer Care – Ms. Durkin, who previously served as Chewy’s Vice President of Customer Service, has a start date of March 1, 2021. She helped establish the world-class customer service operation that positioned Chewy to achieve a Net Promoter Score of 86 in 2018. In her new role, Ms. Durkin will oversee all customer service and engagement initiatives at GameStop.
     
  • Josh Krueger, Vice President of Fulfillment – Mr. Krueger, who previously held senior fulfillment roles at Amazon, Walmart, and QVC, has a start date of March 1, 2021. In his new role, Mr. Krueger will oversee the management of e-commerce fulfillment centers,

... the company wrote on its website on 3rd Feb.

At the time of writing, the stock is trading at $108 and is up some 20% on the day as the price attempt to recover from the lows of $85.25 following a dip from the highs of $113.40.

End of update. 

GameStop Corp. (NYSE: GME), the poster child of the recent market craze, has been staging an impressive recovery with a jump above $100. Shares of the videogame company collapsed from the high of $483 last week – and close of $325 on Friday – to $90 at the end of Tuesday's session. 

GME News: Three reasons to recover

There are three reasons for the recovery. First, bargain-seekers have been jumping on GME, seeing genuine fundamental reasons to rise amid a revamped business plan for the firm. That was the initial reason to rise, before the Reddit frenzy.

Second, the trend toward short-squeezing silver – a market worth 200 times GameStop – has been splitting the community. After XAG/USD jumped above $30, it is back down.

Third, RobinHood relaxed its limitations related to buying and selling stocks. While the online trading platform – that had to raise funds in a firesale – still imposes restrictions, it is now easier for traders to buy new stocks.

Follow the latest stocks news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, 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.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or 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. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD extends slide on hawkish Powell comments, trades below 1.1250

EUR/USD holds lower ground after Fed directed bears to five-week low. Bearish MACD signals, clear downside break of two-month-old.Buyers remain cautious until refreshing the 2022 peak, 61.8% FE will challenge bears past 1.1185.

EUR/USD News

GBP/USD: 200-SMA, monthly support test bears post-Fed

GBP/USD battles key supports as sellers poke 1.3460 during early Thursday. The cable pair broke the 200-SMA following the US Federal Reserve’s (Fed) hawkish verdicts. However, clear trading beneath the same becomes necessary to convince the bears.

GBP/USD News

Gold sticks to weekly lows near $1,815 amid firmer yields

Gold price is meandering near one-week lows of $1,813, as the demand for the US dollar remains unabated amid rising two-year Treasury yields. The two-year US rates spike to fresh 23-month highs of 1.192% as the Fed funds futures tumble on expectations of five rate hikes this year.

Gold News

Binance Coin price needs to reclaim $414 to avoid further losses

Binance Coin price must reclaim $414 as support in order for the bulls to target higher levels. BNB may be confronted with a stiff hurdle at the 50% retracement level at $504. However, if Binance Coin fails to slice above $414, the exchange token may drop lower toward the 200 three-day SMA.

Read more

Federal Reserve rate cycle to begin in March, markets reverse on warning Premium

The Federal Reserve kept its rate policy on schedule, indicating in its statement and Chair Jerome Powell’s press conference that it will raise the fed funds rate at the March meeting for the first time in three years. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures