GME Shares Down 17%, GameStop Stock Volatility Prompted Brief Halt in Trading on Monday

UTC by Steve Muchoki · 3 min read
GME Shares Down 17%, GameStop Stock Volatility Prompted Brief Halt in Trading on Monday
Photo: Depositphotos

GameStop stock is up around 4,937%, 1,068%, 1,630%, and 320% in the past year, YTD, three months, and one month respectively.

GameStop Corp (NYSE: GME) stock experienced increased volatility on Monday. The stock closed the day trading at $220.14, 16.77% down from the opening value. Consequently, trading was briefly halted due to increased volatility according to an American weekly magazine Barron’s.

Meanwhile, GameStop (GME) stock dropped approximately 1.69% during the after-hours trading session according to MarketWatch. However, investors who put their money in the video game company last year have seen their money up approximately 50X. Notably, GameStop stocks are up around 4,937%, 1,068%, 1,630%, and 320% in the past year, YTD, three months, and one month respectively through Monday.

The gains were mostly fueled by retail traders who largely speculated the price at the end of last year and earlier this year. Despite the gains that materialized in the past few months, most Wall Street analysts are bearish on GameStop stock. According to a survey by MarketWatch, GameStop (GME) stock received an average of Under rating from seven ratings.

GameStop (GME) and Its Stock Market Outlook

GameStop, the world’s largest video game retailer, has significantly benefited from the coronavirus pandemic. The company recorded a sharp uptick in sales during the height of the pandemic. Moreover, the company has significantly shifted to online sales to adhere to social distancing protocols. As a result, GameStop has been able to reach more customers globally within a short period. In a statement during the third-quarter earnings results, GameStop’s chief executive officer George Sherman said the company is set to tap on emerging opportunities brought forth by the pandemic. “Leveraging our omni-channel capabilities, we increased E-Commerce sales 257% – demonstrating our ability to serve our customers, wherever, whenever, and however they choose to shop,” he noted.

GameStop is expected to report a better fourth quarter due to increased demand in video game consoles that were launched last year including PlayStation 5 (PS5). “We begin the fourth quarter with unprecedented demand in new video game consoles that launched in November, which drove a 16.5% increase in comparison to sales for the month,” Sherman noted in the statement.

During the third quarter, GameStop’s e-commerce sales spiked by 257%, compared to a 24.6% decline in-store sales. GameStop is expected to report its fourth-quarter in the coming days, which investors anticipate will significantly affect the GME market price.

GameStop stocks have ranged between $2.57 and $484 in the past 52-weeks. The company has a market capitalization of approximately $18.45 billion based on the current market price of around $216.41 with 69.75 million outstanding shares.

Notably, GameStop has recently changed some of its managerial positions although some not yet filled. In February 2021, GameStop announced that its finance chief Jim Bell, appointed in June 2019, would leave the company on March 26.

Business News, Market News, News, Stocks, Wall Street
Steve Muchoki

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."

Related Articles