GameStop Corp. (GME)
GameStop is an American retailer that sells video game consoles, video games and game accessories. The GameStop chain includes 6,100 points of sale in the United States and 17 countries around the world (including Austria, Australia, Canada, Denmark, Finland, France and others). The company also has retail outlets under the brand EB Games and Electronics Boutique. In addition, GameStop publishes the video game magazine Game Informer.
The market for video game physical media began to contract as digital distribution services developed. In 2017, the company announced a 16.4% drop in sales. Between March and May 2020, the COVID-19 pandemic forced the company to close all physical operations of its 3,500 stores while continuing e-commerce and side sales. While digital sales skyrocketed 519%, traditional retail sales fell by more than 30% for the same period year-over-year. The retail chain announced losses of $150 million on $6.8 million in 2019.
In early 2021, the company's outstanding shares attracted keen interest due to the clash between hedge funds short-selling the company's shares and retail investors who agreed amongst themselves on social media sites to step in as bulls. In January 2021, GameStop's stock price rose 1800% from a starting price of about $20 to $350 by 28 January.
In January 2021, GameStop's stock price rose 1800% from a starting price of about $20 to $350 by 28 January. This was followed by a significant downward correction.
The stock price stabilised around $40-50 in February 2021 before seeing renewed upward movement. By June 2021, it had shot up over 11.6 -fold.
GameStop shares' average intraday volatility in H1 2021 has been 22.1%.
How to trade the GameStop Corp.
You can trade the GameStop Corp. through a broker or a trading platform, such as MetaTrader or Libertex. Trading on these platforms could be convenient, and leverage can be used.