GameStop’s management is yet to reveal the details about the turnaround strategy for the business, but they are growing sales and investing in new digital initiatives.
GameStop announced that it could sell an additional 5 million shares. While this is positive for the company and doesn’t create much dilution, it lost investors almost $6 billion in one day.
The markets remain slow, but there are a few things to watch on the inflation front. These include $70 crude, a 13-year high in China’s producer price growth, and more reports of companies seeing supply prices rise. All this comes ahead of tomorrow’s consumer price data.
The stock price of GameStop (NYSE: GME) has seen a solid 26% rise over the last five trading days, and we believe the stock will likely continue to rally in the near term. The 26% rise can primarily be attributed to the broader rally seen in “meme” stocks.