GME Stock Forecast: GameStop tumbles after big retail reports disappointing earnings

NYSE:GME was on the decline on Wednesday’s session, as weaker than expected earnings from major retail companies sent the markets into a downward spiral. Shares of GME sank by 8.87% and closed the trading day at $91.48. Weak earnings from WalMart (NYSE:WMT) and Target (NYSE:TGT) sent the retail sector into free fall as falling consumer demand provided another indication of the rising inflation in the US economy. All three major averages sold off in a sea of red, as only eight components of the S&P 500 rose during the session. The Dow Jones fell by 1,164 basis points, the S&P 500 dropped by 4.04%, and the NASDAQ plummeted by 4.73%.

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Those weak numbers from WalMart and Target sent shockwaves through the retail industry, sending other stocks like Costco (NASDAQ:COST) and Home Depot (NYSE:HD) lower as well. On Tuesday, following WalMart’s earnings report, the stock had its largest single session fall in more than three decades. This was followed by Target dropping by 25% during Wednesday’s session. With prices surging due to inflation and issues with the global supply chain, US retail is reporting its weakest quarter in years.

GameStop stock price

GameStop’s meme stock running mate AMC (NYSE:AMC) announced a significant investment earlier this week. The movie theater chain reported taking a 5.95 million share stake in National CineMedia (NASDAQ:NCMI), a US-based ad company that targets consumers in movie theaters and on mobile apps. The investment is a passive one, meaning AMC does not intend to make any changes to how National CineMedia operates. Shares of AMC were down by 1.05% during Wednesday's session.

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