- GameStop stock roars ahead by 12% on Friday.
- Risk assets are back on the booming trail as Bitcoin bounces higher.
- Equities could see more gains with a falling CPI print on Tuesday.
GameStop (GME) continued its strong recent performance on Friday when it closed at $28.92 for a gain of just under 12%. Risk assets and meme stocks showed outperformance on Friday with shorter names also outperforming. But it was a broadly positive day with market breadth indicators all marking significant gains. Over 90% of all stocks in the Nasdaq and NYSE closed in the green on Friday. So why the optimism all of a sudden? Well, it all boils down to the US economy continuing to post strong economic data points and hopes for an imminent Fed pivot and a halt to rising interest rates.
GameStop (GME) stock news
GameStop got its boost last week when earnings came in ahead of expectations on EPS. EPS was $-0.35 versus consensus at $-0.41. Revenue did miss though by just over $100 million. In truth the earnings were pretty mixed. The company is still burning cash and losing money, so it needs to arrest this fast. It does have time though with a healthy cash balance. EPS improved due to cutting costs, but the company is still running large losses.
Source: Refinitiv
GameStop (GME) stock forecast
The good thing is there is practically zero debt – a legacy of some astute capital raising. This gives GameStop (GME) plenty of time to correct itself, but it is burning through cash currently. In an unusual move, your author was bullish on GME stock last week as Bitcoin powered higher and risk assets were in demand. Before the open, we said on Friday: "Technically, we look to be setting up for a risk-on rally in the short term...Technically, holding above $19.44 is solid and means $29 is the first target. GME was oversold on the Relative Strength Index (RSI)."
Sometimes we do get things right! We even more or less closed at that $29 level we identified. Now Monday is all set up for a bit of calm as books are closed ahead of Tuesday's big CPI print. The market is expecting CPI to fall, so if it doesn't, look out below. But it should fall as oil is lower, shipping costs are lower, and commodities are lower across the board.
A lower CPI should allow this rally to continue and extend. That's my theory, and I'm sticking with it. GME stock then should break $29 and head for $32-$33 resistance and the 200-day moving average. Above there and $40 is the next target, but it will be time to reassess at $32-$33. Holding above $27 keeps the bullish trend intact.
GME stock daily
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
GBP/USD stays pressured toward 1.2900 ahead of UK Budget Report
GBP/USD remains under pressure toward 1.2900 in the European session after the UK's ONS reported that the annual CPI inflation softened to 2.8% in February from 3% in January. This reading came in below the market expectation of 2.9%, weighing on the Pound Sterling ahead of the UK Budget Report.
EUR/USD wavers near 1.0800, US data eyed
EUR/USD trades sideway near 1.0800 in Wednesday's European trading hours as the US Dollar struggles amid the latest tariff threats by US President Trump. Dovish ECB commentary limits the pair's upside ahead of US data and Fedspeak.
Gold bid with Copper rising to record high on tariff threat
Gold’s price is heading to $3,020 at the time of writing on Wednesday and has turned this week’s performance positive after its initial move lower on Monday. The precious metal is being bought together with other precious metals as Copper pops to a new all-time high.
Shiba Inu Price Forecast: SHIB rallies as trading volume rises 228% amid increase in bullish bets
Shiba Inu (SHIB) price extends its gains by 8% and trades at $0.000015 at the time of writing on Wednesday, rallying over 15% so far this week.
Sticky UK services inflation shows signs of tax hike impact
There are tentative signs that the forthcoming rise in employer National Insurance is having an impact on service sector inflation, which came in a tad higher than expected in February. It should still fall back in the second quarter, though, keeping the Bank of England on track for three further rate cuts this year.
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.