GameStop apes are all talk: Webull CEO
Jan 23, 2022
Since the meme stock mania pushed shares of the ailing retailer above $500 intraday in late January 2021, GameStop shares have been orbiting the bowl.
According to Webull CEO Anthony Denier, the recent price movement in GameStop (GME) demonstrates many points.
"If you look at the prices today [at GameStop], it tells me that whether it's diamond hands or monkeys, I believe it's just chatter," Denier remarked on Yahoo Finance Live. "We are witnessing our traders and our investors take money off the table in GameStop."
As the one-year anniversary of the meme stock boom approaches, GameStop stock is doing anything but rising.
On Friday, shares fell below $100 for the first time since shortly before the start of last January's retail stock buying craze. The stock has fallen about 71% since its Jan. 27, 2021 closing high.
The king of meme stocks — led by new CEO Matt Furlong (a former Amazon executive) — hasn't been very open about its aim to transform into a technology firm. There are little details available about GameStop's rumored efforts to develop an NFT marketplace.
Furlong did not answer any analyst questions during his initial round of earnings calls – sessions that were curiously quick and devoid of any substance.
As a result, GameStop's stock has plummeted, despite the fact that it retains a sizable following among retail traders.
"I believe there is a vociferous minority of investors interested in this GameStop phenomena," Denier continued.
To be sure, GameStop's fundamentals remain weak and there is no indication that a reversal is imminent.
GameStop reported a $201.7 million operating loss for the 39 weeks ending Oct. 30.
Microsoft's $68.7 billion bid for Activision Blizzard is also contributing to the negative mood on GameStop.
"The acquisition of Activision Blizzard by Microsoft alters the breadth of critical inputs into our proposed GameStop model. Both firms are significant suppliers to GameStop. A combination strengthens Activision's hold on the market the firm reshapes the amount of Activision titles being made exclusive to Xbox in plans, and heralds a more quicker shift to cloud-based IP gaming "Stephanie Wissink, an analyst at Jefferies, stated this week in a research note.
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