2024-05-15 12:02:52 ET
Summary
- GameStop shares are surging higher as online trading communities are once again focusing on heavily-shorted stocks and social media stars re-emerge from long-term hibernation.
- However, we view the stock as a "strong sell" due to weak revenue trends and heightened competition from online retailers.
- Technical analysis suggests potential areas of support and resistance, but mixed chart indicators do not strongly support bullish trades.
One of the market’s favorite “ meme stocks ” is making headlines once again, as shares of GameStop Corporation (GME) have posted single-session gains of nearly 75% and re-ignited the passions of various online trading communities focused on buying heavily-shorted stocks. Most of this attention seems to be stemming from new internet posts made by “Roaring Kitty”, which is the online moniker of one of the most famous GameStop traders (and someone that has largely been missing from public view since 2021)....
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For further details see:
GameStop: Beware The Rally (Technical Analysis)