GameStop Stock Price Prediction: When $100?

GameStop stock (NYSE: GME) has made an explosive comeback in a major turn of events. The shares of the brick-and-mortar gaming store are on an exponential trajectory as the retail investors step over each other to buy the stock. Let’s find out what is driving this price action.

The ongoing uptrend in US equities has sent benchmark indices like the S&P 500 and NASDAQ 100 to new all-time highs. These market conditions have significantly impacted the liquidity, creating a favorable environment for meme stocks like GME and AMC to thrive.

Roaring Kitty Resurfaces, Sending GameStop To ~3-year Highs

Keith Patrick Gill, also known as Roaring Kitty on social media platforms, has become active again with a Tweet on Monday. The financial analyst and a major contributor on the subreddit r/wallstreetbets was the man who inspired the historic short squeeze of GameStop stock in 2021.

The sudden comeback of the legendary meme trader after an almost 3-year hiatus has reignited the interest in meme stocks like AMC and GME. As a result, NYSE: GME has been up more than 150% in the last 48 hours, causing trading to be halted on the New York Stock Exchange. The Tweet by the veteran trader has garnered 24.6 million views on X.

Gamestop Q4 Earnings Missed Estimates

Gamestop Corporation released its Q4 earnings report on March 26, 2024. The report showed that earnings per share during the quarter came at $0.22, against the consensus estimate of $0.29. A similar decrease in quarterly revenue was also reported, as Q4 revenue remained at $1.79 billion, against the forecasted figure of $2.05 billion.

Gamestop Stock Price Prediction

Predicting the price action of volatile assets like NYSE: GME is very difficult. Nevertheless, the recent surge has propelled the stock to its highest level since June 2021. This translates into almost a 400% increase from its April lows.

Currently, the price is trading above the $48 resistance level, which has resulted in multiple rejections in the past. Gamestop stock price prediction could become extremely bullish if bulls flip this resistance level into support. This could give bulls enough confidence to run a short squeeze by pushing the price toward $85 resistance.