- 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.
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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.
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