GME stock exploded 24% higher on January 6, 2022, after the WSJ pumped the stock.
GameStop launching NFT and cryptocurrency marketplace unit, WSJ reports
The WSJ published an article that GameStop is launching a division to develop a marketplace for nonfungible tokens and establish cryptocurrency partnerships. The company has hired more than 20 people to run the unit, which is building an online hub for buying, selling and trading NFTs of virtual videogame goods such as avatar outfits and weapons, sources told the Journal. The company is asking game developers and publishers to list NFTs on its marketplace when it launches later this year, they added. The sources noted that GameStop also is close to signing partnerships with two crypto companies to share technology and co-invest in the development of games that use blockchain and NFT technology. Source: http://www.wsj.com/articles/gamestop-entering-nft-and-cryptocurrency-markets-as-part-of-turnaround-plan-11641504417?page=1
Ascendiant ‘very concerned’ about GameStop prospects, cuts price target
On December 27, 2021, Ascendiant analyst Edward Woo lowered the firm’s price target on GameStop to $23 from $24 and keeps a Sell rating on the shares. “Reddit trading” may rally the shares in the near term, but this will likely fade in 2022 as digital threats increase given the company’s “weak” earnings outlook, Woo tells investors in a research note. Recent reports by video game publishers shows that digital revenue is increasing at a fast pace, says the analyst. He remains “very concerned” about the long-term prospects for GameStop’s core video game business “once hardware sales temper as the installed base matures.”
📈 GME Stock Technical Analysis
Both the long and short-term trends are negative. It is better to avoid buying stocks with negative trends. GME is one of the better-performing stocks in the Specialty Retail industry, it outperforms 97% of 114 stocks in the same industry. Prices have been falling strongly lately, it is better to avoid new long positions here.
There is resistance at 212.77 from a trend line in the weekly time frame. There is also resistance at 221.86 from a trend line in the weekly time frame. Finally, there is resistance at 232.85 from a trend line in the daily time frame.
The technical rating of GME is bad and it also does not present a quality setup at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when GME stock consolidates and is a good long entry.