GameStop (NYSE: GME) is trading at post-meme stock levels. Can it hold the line and mount another offense or is it doomed to fall?
One Wall Street analyst believes that GameStop stock is likely to suffer more losses within the next 12 months.
One analyst’s target price sees a 66% loss
GameStop has a ‘moderate sell’ rating based on one analyst from Wedbush, who has a price target of $6. This is 66% lower than the current market price of $18.42.
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The lack of analysts covering this stock means it has fallen out of favor and is less popular among traders for the time being.
GameStop is releasing its quarterly results on September 6, which may show narrowing losses per share. If that happens, that would be positive for the stock and could bring back investors’ eyes.
Analysts expect revenue of $1.14 billion and an earnings per share loss of 17 cents. This would make GameStop unprofitable for the quarter. Return to profitability could happen in Q4 based on analyst expectations. Historically, Q4 has been most profitable for the company due to seasonality and the holiday season.
GameStop stock technical analysis
GME stock has been trading in a range of between $16.3 and $25 since December 2022. The stock’s support level of $16.3 has held three times, making it a good buying spot if you’re bullish on the stock.
A break below $16 opens the way to further losses toward $10. But a break above the $25 level is likely to take the stock to $30, which in turn could cause a minor short squeeze to $40. But unless something dramatic happens, the stock is likely to remain within the range.
Despite going up and down throughout the year, GME has still returned 7% year-to-date. That’s outperformed by the S&P 500’s 18% return within the same period.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
