Skip to content

GameStop in danger: Can GME stock hold the $20 mark?

GameStop in danger: Can GME stockĀ  hold the $20 mark?
Jordan Major

GameStop (NYSE: GME) found itself in hot water on September 11, with shares plummeting 15.09% to $19.95 at market open following a shaky Q2 earnings report. While the company managed to beat EPS expectations with a slim $0.01 per share (compared to estimates of a -$0.09 loss), it wasnā€™t enough to offset other troubling figures.

Revenue plunged a staggering 31.9% year-over-year to $790 million, missing expectations by $106 million. Adding to the pain, adjusted EBITDA came in at a negative $18 million, a far cry from last yearā€™s positive $1 million.

GameStop is grappling with deeper structural issues, and its stock is now clinging to hold onto the $20 markā€”a level many analysts, including myself, see as critical support. If GME can’t stabilize, it may be in for an even rougher ride ahead.

GameStock stock chart analysis

GME shares are currently trading near the lower end of their 52-week range, while the broader market, with the S&P 500 Index, remains at the higher end, thus, lagging behind the overall market. 

Over the past month, GME has been bouncing within a wide trading range between $19.88 and $25.02. Now, the stock is teetering near the lower boundary of that range. Support sits at $20.09, anchored by a trend line on the daily chart. 

GME 1-day price chart. Source: Finbold

If GME can’t regain and hold this support, investors could see an accelerated sell-off, further dragging the stock into dangerous territory. The next few sessions will be pivotal as GameStop fights to stay afloat.

Analyst weighs in on GME stock

Interestingly, Wedbush analyst Michael Pachter is urging caution when it comes to GameStop shares. Pachter has maintained a ā€œSellā€ rating on GME since 2021, when he downgraded the stock from a “Hold,” and he hasnā€™t softened his stance.Ā 

Patcher’s GME stock coverage. Source: TipRanks

Pachter had advised investors to bail out ahead of earnings, citing the companyā€™s continued reluctance to engage with shareholders.

With this level of uncertainty, Pachter’s outlook as well as GME stockā€™s current price action may suggest that investors may want to tread carefullyā€”or better yet, head for the exits.

Buy stocks now with eToro ā€“ trusted and advanced investment platform


Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (ā€œthe BDā€), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (ā€œthe MSBā€) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&Cā€™s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.