GameStop Corp. (NYSE: $GME) specializes in providing games, entertainment items, and technology across its retail outlets and online platforms. Operating in four key geographic segments – the United States, Canada, Australia, and Europe – it offers an extensive array of products across diverse categories. These encompass hardware, accessories, software, and collectibles.
The company retails both new and pre-owned gaming systems from various console and personal computer manufacturers, such as Sony PlayStation 5, Microsoft Xbox Series X, and Nintendo Switch. In addition to gaming consoles, it supplies accessories like controllers, gaming headsets, virtual reality gear, and memory cards.
GameStop also offers in-game digital currency, downloadable content (DLC), and full-game downloads. Its Collectibles division comprises apparel, toys, trading cards, gadgets, and an array of retail products, along with its involvement in digital asset wallets and NFT marketplace activities.
Under brands like GameStop, EB Games, and Micromania, the company operates brick-and-mortar stores and e-commerce platforms.
$GME Share Price Live Today
As of November 29, 2023, GameStop Corporation’s stock is valued at $13.49. This represents a 13.2662% increase, or $1.58, compared to the previous close. The day’s low and open prices stand at $11.89 and $11.90, respectively. With a market capitalization of $4.12 billion, GameStop Corporation is listed on the New York Stock Exchange (NYSE).
It’s important to note that the stock price of GameStop Corporation may undergo changes during the day due to market dynamics and fluctuations.
GameStop stock fans expect another meme stock rally
Recent options trading activity suggests that GameStop Corp. (GME) stock might be gearing up for another surge. While the video game retailer has faced declining sales due to a shift in demand towards online platforms, it gained attention as a favorite among Wall Street Bets investors on Reddit in late 2020.
The optimism stemmed from the belief that GameStop, guided by billionaire investor Ryan Cohen, could reinvent itself, leading to a remarkable increase in share prices from $1 in 2020 to over $120 in early 2021.
Since then, shareholders have experienced a challenging journey, with GameStop stock currently trading below $15 per share, leaving many investors in a losing position. However, recent options trading activities suggest that some anticipate a potential resurgence for GameStop as a meme stock.
GameStop initially rose to prominence during the meme stock craze, driven by factors such as easy money policies with record low interest rates, increased interest in day trading due to lockdowns, and stimulus payments enabling Main Street investors to enter the stock market.
The company gained widespread attention when Wall Street Bets member Keith Gill highlighted it as a value stock worth buying in July 2020. However, the real surge occurred in January 2021 when GameStop announced the appointment of Ryan Cohen, the former Chewy founder, along with other e-commerce leaders, to its board of directors.
This move fueled hopes that GameStop could transform from a struggling mall-based retailer into a thriving online gaming powerhouse, catching short-sellers off guard.
At that time, GameStop’s short interest had ballooned as hedge funds underestimated the potential of the company’s online evolution. The surge in Wall Street Bets membership in January 2021 led to more investors using platforms like Robinhood to open positions in GameStop, triggering a buying cascade that drove up share prices. This, in turn, forced those betting against GameStop to buy shares to cover their short positions.
GameStop Stock’s Best day Since January
Investors are increasingly betting on GameStop Inc. with speculative call options that would yield returns if the stock price almost doubles before or shortly after the company’s earnings report on December 6, according to FactSet data.
For call options expiring on December 8, two days after the upcoming earnings report, traders are favoring options with strike prices at $20, $22, and $22.50, as well as other contracts further out. To be considered “in the money,” a $22.50 call requires the stock to surge by at least 40%, with shares closing at $13.49 on Tuesday, as per FactSet data.
The $20 strike calls have witnessed the highest trading activity among GameStop call options expiring on December 8, with over 20,000 contracts exchanged on Tuesday. Each option contract grants the holder the right to buy or sell 100 shares of stock at a predetermined price on or before a specified date.
On Tuesday, a total of 140,000 GameStop call options were traded, significantly surpassing the 20-day average of 30,000, according to Danny Kirsch, head of options at Piper Sandler. Calls expiring a week later on December 15, particularly the $20 strike calls, have also experienced substantial volume.
While reminiscent of the speculative frenzy that propelled GameStop shares from $3 to nearly $500 in January 2021, analysts like Kirsch and Brent Kochuba, founder of Spotgamma, believe that this surge in call-buying is more indicative of a broader trend toward speculative stocks on Tuesday, rather than a renewed meme-stock mania.
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