GME Stock (GME.US): Live Price Chart

The company is heavily reliant on the gaming industry, which is notoriously volatile. Gamestop shares are also highly traded, which can lead to large swings in price. As a result, Gamestop may not be suitable for all investors. Before investing or trading via CFDs in Gamestop, it is important to carefully consider your risk tolerance and investment objectives.

Gamestop does not have a majority shareholder; instead, it is owned by a large number of shareholders. The largest shareholders include Fidelity Investments, Vanguard Group, and BlackRock. Gamestop shares are also popular with individual investors, many of whom hold the stock for the long term. Gamestop shares have been highly volatile in recent months, due to investor speculation about the future of the gaming industry.

Gamestop shares do pay dividends to shareholders. GME is the Gamestop Corporation's ticker symbol on the New York Stock Exchange, and the company has been paying dividends since 2015. Gamestop pays out a quarterly dividend, meaning that shareholders receive payments four times per year. The dividend payments are typically made in March, June, September, and December. Gamestop has increased its dividend payments every year since 2015, and the current dividend yield is 1.6%.

This means that for every Gamestop share that a shareholder owns, they will receive 1.6% of the Gamestop Corporation's annual profits as a dividend payment. Gamestop is not currently repurchasing any of its own shares, but it has authorized up to $300 million for share repurchases in the future. As of February 2021, Gamestop Corporation had a market capitalization of $24.4 billion.

GME shares exploded in value in early 2021 after a short squeeze was initiated by retail investors on Reddit. The company, along with AMC and other companies that had been targeted by hedge funds for short selling, saw their stock prices increase dramatically as retail investors bought up shares and forced the hedge funds to cover their positions.

The GME short squeeze was notable not only for its size and scope, but also for the fact that it was driven entirely by retail investors using platforms like Robinhood.

While GME is still the top game retailer in the United States, it is facing stiff competition from online retailers such as Amazon and GameStop. In addition, many investors are worried about the future of the company in an increasingly digital world. However, GME remains optimistic about its future, and it is working hard to compete in the ever-changing retail landscape.

Gamestop shares have risen by almost 20% YTD, and once more, shorts are being squeezed. High borrow costs are cited as a secondary source of losses for short-sellers. Can the rally continue to be propelled by short squeezes?

Squeezed short positions aren’t the most reliable fuel for market rallies. Over time, the costs can lead to despair and shorts eventually throwing in the towel on their short positions - the pain trade.

Unlike some of the other cash-burning memestocks, Gamestop reported a profitable quarter to close out 2022, sparking a 50% rally in the extended trading session.

CEO Matt Furlong said “We're aggressively focused on year-over-year profitability improvement while still pursuing pragmatic long-term growth,”

However, the increase in profitability was driven by cost-cutting rather than top line revenue growth, leading analysts to question if profitability would continue.

Probably. Businesses that can’t turn a profit don’t have a good track record of turning things around. Gamestop’s business model was flawed. The high dependence on physical game sales was a key weakness as more consumers switched to purchasing games digitally.

Although Gamestop is trying to improve their digital offering, it may be too late.

Director Larry Cheng bought 5,000 shares on March 29th 2023 at an average price of $22.79 each, for a total value of just under $114,000. Cheng already owned an additional 7,000 shares in a personal account.

Gamestop shares are likely to head lower in a recession. Usually, recessions result in a credit crunch, and the least profitable businesses frequently end up in Chapter 11 bankruptcy and debt restructuring arrangements.

While Gamestop has tried to innovate, it remains a business with no economic moat and no competitive advantage. The push to move into e-commerce has also stalled, jobs have been cut, and existing stores have become mini-fulfillment centres.

NFT prices plummeted globally in 2022, and even though Gamestop’s NFT platform traded as much as $13 million in July, that had fallen to $600,000 by January 2023.

Without a new grand strategy, Gamestop looks to be in real trouble as a viable business. The current cash levels offer a safety buffer for now, but the memestock mania may have simply prolonged the inevitable.

Dynamics in the options space and fluctuations in short interest and borrow rates may be a far better indicator for changes in the share price than anything the company can do in a slowing economy. Even now, this is a stock that trades quite separately from the traditional ‘fundamentals’.