GameStop Profit Potential, What Analysts Think

GameStop Pokemon

GameStop, the American highest street shop, selling games, consoles and other electronics is a step ahead in growth strategy and profitability. In a recent press release, it's forward-looking statements, reveals expected benefits from debt reduction. As presented to the SEC, this includes future plans to handle potential risks that could affect the company business and financial reports.

Taking this further positions GME on a path to great transformation, strengthening its footprint, reducing costs, debt and driving e-commerce growth.

Why Investors Should Pay Close Attention to GME Stock

Investors in the market need to pay more attention to GameStop stock based on its market volatility. Though this may seem a good reason not to invest, following what was cited by Robinhood in a recent blog.

In a blog posted on January 28, Robinhood stated it was preventing users from buying stock from several companies which included GameStop, due to market volatility.

Well, this may be a sincere warning but there is another side to it. GME stock volatility is implied volatility, which shows a market movement indicating future rise in price.

When options show a high level of implied volatility, it suggests investors in the base stock are expecting a big move to happen one way or the other. It also means there are future events that could cause a huge sell-off.

What Do Analysts Think About GameStop?

Experienced traders usually choose options with high levels of implied volatility to sell premium. Using this strategy gives the option traders hope that at expiration, the underlying stock does not move as it was expected.

Right now, analysts feel GameStop high implied volatility indicates a trade is developing. At a $690.00 call on April 30, 2021 all equity options indicated highest implied volatility. Implied volatility is one thing to consider when planning trading strategies.

Consumer Electronics is a viable industry that ranks in the Top 43% of Industry Rank. All indications show option traders planning a big move for GameStop shares.

In his review of the stock market, Jim Cramer compared GME with other retail stocks, he thinks now is the best time for GME stock offering. In his tweet, he calls on GameStop founder, Ryan Cohen to offer another $500 million tranche of GameStop stock.

Jim Cramer

Cramer further revealed that despite how hard it is to be in the video game stock presently, it is also the best time for GME shares as he is aiming to acquire more.

GameStop Corp is a Fortune 500 company with headquarters in Grapevine, Texas, United States. It offers games and entertainment products via numerous e-commerce platforms and stores.

GME recent expansion moves include evaluation of leadership to ensure the company has the right skills in place for strategic growth.

It also involves acquiring a new 700,000 square foot site to support the ongoing move for transformation.

On May 03, 2021 GME announced taking a lease to expand its North American fulfillment network center in York, Pennsylvania. This facility is expected to start operations by the fourth quarter of 2021 to support e-commerce and other fulfillment needs.

The company has the aim to grow product offerings and facilitate shipping across the east coast through this center.

GameStop has maintained popularity and market viability in the consumer electronic industry over the years. It is worthy of note that the company is making a serious effort to maintain this trend as well as attaining a higher level of market value.

Now may be the best time for any investor to buy into GME shares for greater gains.
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I own GME and like the stock. This is not financial advice and I am not a financial advisor.


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