- NYSE:GME is still extremely inflated given the current state of the company.
- GameStop, AMC, and the Reddit retail army continue to put pressure on short sellers.
- Retail investors insist on investing in meme stocks as FOMO sets in and the markets may have a case of deja vu.
NYSE:GME has become more of a movement like Occupy Wall Street, rather than a sound investment on the fundamentals and future growth of the company. Ask many of the retail investors involved in the latest short squeeze attempt, and most would not even be able to tell you how a business’ market cap is calculated. This is fairly evident in social media posts about fellow meme stock AMC (NYSE:AMC) having a short squeeze price target of anywhere from $1,000 to $100,000 per share. GameStop may be turning itself around, but the stock is not going to the moon solely based on its solid balance sheet.
Stay up to speed with hot stocks' news!
The short squeeze is expected to continue this week as GameStop and AMC remain the focus of the Reddit army led by the subreddit r/WallStreetBets. The ongoing saga has reportedly cost short sellers billions of dollars over the past couple of weeks, and many on Reddit are anticipating that a major squeeze could be coming ahead of June 18th, which is a date where thousands of call options are set to expire.
GME stock forecast
It will be interesting to see how strong the diamond hands are this week, as AMC and GameStop hit recent highs that saw some momentum traders take some profits. If Monday was any indication during the American Memorial day holiday, AMC shares surged on the Frankfurt Exchange in Germany by 11.86%. We might be reminded of Mark Twain’s famous quote: “History does not repeat itself, but it often rhymes.” Those investors who FOMO into AMC and GME at their elevated prices, may be left holding the bag, just as we saw back in January.
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 holds above 1.0400 in quiet trading
EUR/USD trades in positive territory above 1.0400 in the American session on Friday. The absence of fundamental drivers and thin trading conditions on the holiday-shortened week make it difficult for the pair to gather directional momentum.
GBP/USD recovers above 1.2550 following earlier decline
GBP/USD regains its traction and trades above 1.2550 after declining toward 1.2500 earlier in the day. Nevertheless, the cautious market mood limits the pair's upside as trading volumes remain low following the Christmas break.
Gold declines below $2,620, erases weekly gains
Gold edges lower in the second half of the day and trades below $2,620, looking to end the week marginally lower. Although the cautious market mood helps XAU/USD hold its ground, growing expectations for a less-dovish Fed policy outlook caps the pair's upside.
Bitcoin misses Santa rally even as on-chain metrics show signs of price recovery
Bitcoin (BTC) price hovers around $97,000 on Friday, erasing most of the gains from earlier this week, as the largest cryptocurrency missed the so-called Santa Claus rally, the increase in prices prior to and immediately following Christmas Day.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.