From Nasdaq: 2024-06-03 23:20:45

GameStop stock (NYSE: GME) has surged 40% year-to-date, driven by “meme” stock rally. Expect a 75% gap-up trade on June 3 after Roaring Kitty’s $116 million position reveal. However, past returns show inconsistency. While GME underperformed the S&P in 2022 and 2023, its future remains uncertain amid lack of fundamentals.

GameStop’s revenue dropped from $6 billion in fiscal 2022 to $5.3 billion in fiscal 2024, with thin margins. Analysts forecast a 70% downside from previous close. Despite speculation regarding Keith Gill’s position, investors may be better off avoiding GME due to weak fundamentals. In the long term, GME’s outlook is uncertain.

In a comparison of returns, GameStop has outperformed the S&P 500 with 32% year-to-date return and 266% total return from 2017-2024. Meanwhile, Trefis Reinforced Value Portfolio has shown significant growth with a 4% return year-to-date and 640% total return from 2017-2024. Consider market-beating Trefis portfolios for investment insights.



Read more at Nasdaq: What’s Happening With GameStop Stock?