GameStop’s stock rallied today after the stock soared past $200 for the first time since March after an announcement of the company investing in NFTs.
Infamous video game retailer GameStop is back in the news thanks to its incredibly successful rally this week. The GameStop stock broke $200 after two whole months sitting in the high $100 range, but many feared that it wouldn’t be able to rise beyond that, and might even sink further. Thankfully for investors, the exact opposite happened.
GameStop has been incredibly volatile since the start of 2021. The company’s stock went on a wild ride from about $20 to almost $400 at its peak within a matter of weeks. Although the stock quickly crashed, it has still remained incredibly valued on the stock market. This has resulted in GameStop making big changes to try and retain and even increase its own value in the hopes of saving it from otherwise certain bankruptcy.
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Today, after starting the week just below its resistance point of $180, GameStop’s stock soared past $200 (via MarketWatch). The market closed with the stock gaining 16.43% and a closing price of $209.43. The company continued to rise another 3% in after hours trading to $216.20 at the time of writing. The rise in price seems to be partially dictated by a quiet announcement from GameStop regarding investing in NFTs, though a larger announcement has yet to be made.
Whether or not the stock can hold under the pressure and continue rocketing upward remains to be seen, but it looks incredibly promising for now. The last time the stock was above $200 was just prior to GameStop’s poor earnings call, which sent the stock plummeting and left many wondering if it would ever make it back to its previous spot. After two months, this finally happened, ensuring investors that they can rejoice for now. GameStop is expected to have another earnings call on June 8, which should provide either more joy or despair depending on how things go. The last quarter has seen some of the biggest changes to the company in years, so hopefully that will bring positive news out of the call.
As of right now, there’s really no way of knowing what to expect from the stock’s future. Perhaps GameStop has some news to share to keep the momentum going this week, but there’s really no telling. Regardless, the fact that GameStop’s biggest retail investor is still holding on to his shares and recently doubled down, despite having an opportunity to sell, bodes well. There’s a lot on the line, and so long as it can successfully navigate this course, GameStop may live to fight another day.
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