GameStop (NYSE: GME ) remains among the most volatile stocks in the market. Media attention on GameStop stock can be both beneficial and detrimental for investors. High borrow fee rates and significant volatility make this a very difficult stock to gauge in terms of where it will trade over any time frame.
The reality is that GameStop’s fundamentals have gotten forgotten in this meme stock trading debacle. The company’s extremely high price-earnings ratio of roughly 300-times suggests investors are betting on quite the turnaround with this flailing bricks-and-mortar video game retailer. These metrics come at a time when analysts are predicting growth should slow dramatically, with no profit likely to come this quarter.
I’m of the view that more downside is ahead, but at current levels, this is a dangerous stock to short. Here’s why I think the party’s likely over for speculators of all types in this name. GameStop Stock Rides Meme Stock Frenzy GameStop’s Solana-based meme coin, GME, surged 17% in U.
S. trading, trading at $0.008691 with a market cap of around $59 million.
Trading volume rose 30%, indicating increased trader interest. Whenever a company moves into the crypto realm, that’s typically a red flag of sorts, whether crypto enthusiasts want to admit it or not. While this meme coin has seen strong momentum over the past month, it’s clear that the return of Roaring Kitty (Keith Gill) in early May influenced its recent performance, echoing notable spikes .
