SNE - Is GameStop Stock a Buy?
Video game retailer GameStop (NYSE: GME) has been on a wild ride in recent months. Largely written off as a failing dinosaur in 2019 and early 2020, the stock got a new lease on life when Microsoft (NASDAQ: MSFT) and Sony (NYSE: SNE) introduced their next-generation gaming consoles last fall. And then the real fun started, as retail investors organized to drive GameStop's heavily shorted stock "to the moon" in January. The stock closed December 11 at $11 per share, skyrocketed all the way to $483 per share on January 28, and then fell back to earth again. Last Friday, GameStop closed the day at $40.59 per share.
Is it time to buy GameStop at more reasonable prices, then? Well, no. Here's why GameStop still looks like a terrible investment.
The unique market conditions that set GameStop up for January's fireworks are simply not there anymore.
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Is GameStop Stock a Buy?