GameStop Corp. GME is back in the spotlight as it gears up for third-quarter earnings on Tuesday, Dec. 10, after the market close.
Analysts predict a loss of 3 cents per share on revenue of $887.7 million. Yet, in true meme-stock fashion, the buzz — not the balance sheet — is stealing the show.
Roaring Kitty Strikes Again
On Thursday, a cryptic tweet from Keith Gill — better known as Roaring Kitty — reignited retail investor excitement. Featuring an edited Time magazine cover, the post sent GameStop shares soaring by 10% intraday before closing up 5.92%.
AMC Entertainment Inc AMC joined the rally with a 12% gain. Unrelated stocks like Unity Software Inc U and Clear Secure Inc YOU saw speculative action, underscoring the enduring power of meme-stock culture.
Read Also: What’s Going On With AMC Entertainment Stock?
GameStop Rises On Meme Stock Momentum
GameStop’s stock is coming off a volatile year. It’s down 38.5% over the past six months but still up 92.92% year-to-date.
Thursday’s surge pushed the video game store franchise into strongly bullish technical territory, buoyed by retail trading enthusiasm reminiscent of its January 2021 heyday.
Chart created using Benzinga Pro
GameStop Stock Charts Flash Green
The charts suggest bullish momentum leading into earnings:
- Moving Averages: GME trades above its eight-day ($28.72), 20-day ($27.85), 50-day ($24.16) and 200-day ($21.16) simple moving averages, signaling strong bullish trends.
- Momentum Metrics: The MACD (moving average convergence/divergence) indicator stands at 1.30, reinforcing a bullish trend. Meanwhile, the RSI (relative strength index) at 61.41 suggests the stock is neither overbought nor oversold, leaving room for upward movement.
The Big Question
As earnings day looms, investors are asking: Will financials validate the optimism, or is this another meme-fueled rollercoaster?
With retail traders in the driver’s seat and Roaring Kitty’s influence still potent, GameStop could see fireworks regardless of the numbers.
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Overview Rating:
Speculative
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