GME Stock News: GameStop Corp. Price rebounds on eCommerce prospects, shrugging of Fed concerns

NYSE:GME trimmed 0.91% on Tuesday amidst a massive NASDAQ correction.
GameStop takes the first step towards its transition to an eCommerce company with a new fulfillment center.
GameStop also took steps to being free cash flow positive as it eliminated long-term debt from its balance sheet.

Stocks Reporter FXStreet

Update Friday, May 7: GameStop Corp (NYSE: GME) has been able to pare some of its losses, rising by 0.96% to $161.01 in a turbulent trading session on Thursday. Shares of the poster child of meme stocks have traded steadily in recent days – a change in its behavior. GME has returned to the spotlight after the Federal Reserve mentioned it as an example of potential market instability. Nevertheless, investor will likely shrug it off and focus on the company's upcoming earnings report.

NYSE:GME has definitely lots much of its steam from earlier this year as the daily average trading volume continues to be a fraction of what it once was. The king of the meme stocks has been trending downwards and has hit a strong resistance at $200 every time the stock comes close to those price levels. On Tuesday, amidst one of the worst trading days for the NASDAQ in months, GameStop fell by 0.91% and closed the session at $160.73. GME is now trading well below its 50-day moving average as its chart continues to see a bearish trajectory.

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One bright spot for shareholders came when GameStop announced that it was opening a 700,000 square foot fulfillment center in York, Pennsylvania. GameStop is trying to build up its delivery service on the east coast and is hoping to have the fulfillment center operational by the fourth quarter of this year. New interim Chairman Ryan Cohen has been very vocal about transforming GameStop into an eCommerce platform that can be the ‘Amazon of gaming’, and this location is the first big step towards realizing Cohen’s vision.

GME stock dividend

GameStop has also taken steps to clear its balance sheet of long-term debts, as it recently completed a voluntary redemption of over $216 million in senior notes. If the company is as serious about its evolution as Cohen says they are, this will go a long way in helping to fund the transformation. GameStop should provide an update to shareholders at its quarterly earnings call scheduled for June 8th, 2021.

Previous updates

Update May 5: GameStop Corp (NYSE: GME) has kicked off Wednesday's trading session with an upswing of 1.11% to $162.50 at the time of writing. Shares of the Grapevine, Texas-based company managed to weather the equity market downfall on Tuesday and are on course to set yet a second higher low – marking an uptrend. The poster child of Reddit stocks is benefiting from a substantial business development – moving toward eCommerce – described below.

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FXStreet

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