- GameStop is struggling for relevance as COIN takes over.
- GME shares under pressure, down 6% on Thursday.
- GME is looking for a new CEO, according to Reuters.
GameStop is still struggling for momentum as retail volume exits the markets for the real world. Volume across all meme favourites GME, AMC, PLTR, KOSS and others has dropped. Volatility is also down sharply in these names, well it could not have gotten much higher!
GME shares have been producing the odd fightback in an otherwise downtrend and technically still look bearish.
GameStop (GME) stock news
GameStop is reportedly looking for a new CEO, according to a report carried by Reuters on Wednesday. This comes as existing CEO George Sherman forfeited 587,000 shares as part of a performance award, for failure to meet targets. Obviously, those targets did not include a rising share price. This is a bit of a hit when you consider it is $91 million in forfeiture at current prices.
GameStop also announced it is to be debt-free as it announced the early redemption of $216 million worth of senior notes due in 2023. GME had announced on April 5 plans for a share raise of up to $1 billion. The redemption is to be done from GameStop's existing cash.
GameStop (GME) stock forecast
Fundamentally GME is way overvalued. Many high growth stocks bring high valuations such as Netflix, as investors bet that earnings will grow into the valuation. This strong growth allows earnings multiples to soften and eventually a successful company does not look so overvalued on a fundamental basis. Again, the ones such as Netflix.
But GameStop is at a much earlier stage. It does not yet have a proven model and instead is aiming to replicate other online retail strategies. The difference is GameStop has formidable competitors in online game sales from vested interests such as Sony (owner of Playstation) and Microsoft (owner of XBox).
Technically the picture is still bearish. Each spike high fails lower than the previous one, as evidenced by the downtrend line from the Jan 28 high.
The MACD crossed over in mid-March giving a sell signal and it remains in a bearish crossover. RSI is signalling neither overbought nor oversold. The Directional Movement Index (DMI) is showing the trend is weakening but no reversal.
Apart from the indicators, the chart is also painting a bearish picture. Declining volumes and a triangle formation ultimately will lead to a breakout. Usually, breakouts are sharp and triangle breakouts notably so. GME is below the 9 and 21-day moving averages which are themselves pointing lower. All bearish signs.
Going short this one is not advised. The /wallstreetbets Reddit forum would love to see that! But buying puts is a way to profit from expected declines and limiting any downside. On Thursday, $150 puts expiring May 7th were trading around $22. Given the extended move possible on a breakout, this may be a useful strategy.
For those with a bullish bias, wait for a breakout to the upside of the triangle formation with confirmation of a break of moving average resistances and MACD crossover.
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.
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.
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.
Recommended content
Editors’ Picks
EUR/USD retreats from fresh multi-year highs, holds above 1.1000
EUR/USD neared 1.1150 in the European session on Thursday, shedding roughly 100 pips afterwards. The Euro holds on to solid gains amid broad US Dollar weakness, after US President Trump unveiled aggressive tariffs on the "Liberation Day." Markets await mid-tier US data releases.
GBP/USD surges to multi-month tops near 1.3200 ahead of US data
GBP/USD paused its rally after briefly surpassing the 1.3200 mark, yet holds on to most of its intraday gains. The US Dollar plunged to a fresh YTD low amid worries about a tariff-driven US economic slowdown, lifting Fed rate cut bets and weighing on the Greenback. The focus now remains on the US data for further impetus.
Gold retreats below $3,100 from all-time peak
Gold price extends its steady intraday pullback from the all-time peak touched this Thursday, and pierces the $3,100 mark in the European session. Bullish traders opt to take some profits off the table and lighten their bets around the commodity amid slightly overbought conditions.
SOL is the winner as Solana chain turns into battleground for meme coin launchpad and DEX
Solana (SOL) gains nearly 2% in the last 24 hours and trades at 118.28 at the time of writing on Thursday. A Decentralized Exchange (DEX) and a meme coin launchpad built on the Solana blockchain have waged a war for users and compete for the trade volume on the chain.
Trump’s “Liberation Day” tariffs on the way
United States (US) President Donald Trump’s self-styled “Liberation Day” has finally arrived. After four straight failures to kick off Donald Trump’s “day one” tariffs that were supposed to be implemented when President Trump assumed office 72 days ago, Trump’s team is slated to finally unveil a sweeping, lopsided package of “reciprocal” tariffs.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.