GameStop Corp (NYSE:GME) shares are bouncing around Tuesday afternoon as the market braces for the retailer's third-quarter earnings report next week. While the stock has enjoyed an 11% rally over the past week, the focus is potentially shifting from social media sentiment back to fundamentals. Here’s what investors need to know.
- GME is trading near recent lows. See the complete data here.
What To Know: Bullish chatter surged over the holiday weekend after “Big Short” investor Michael Burry surfaced a 2019 email exchange with meme stock trader Keith Gill, widely known as “Roaring Kitty.”
The correspondence revealed Gill's wholehearted support for Burry's aggressive share buyback thesis at the time, with Gill agreeing the stock was “absurdly” undervalued. This revelation triggered a rally late last week, reigniting interest across social feeds.
However, the social media sentiment clashes with a tougher 2025 reality. GameStop shares remain down approximately 25% year-to-date, leaving major institutional holders like Renaissance Technologies and Citadel Advisors facing steep paper losses on their lingering positions.
All eyes now turn to Dec. 9, when GameStop reports earnings. Wall Street forecasts earnings per share of 18 cents on revenue of $987 million. Investors are waiting to see if the retailer's financials can match the renewed hype ahead of a widely expected Federal Reserve rate cut on Dec. 10.
Benzinga Edge Rankings: Despite the negative price action, Benzinga Edge rankings assign GameStop a remarkably high Growth score of 99.31, creating a sharp divergence from its weak Momentum rating of 14.74.
GME Price Action: GameStop shares were up 0.37% at $22.87at the time of publication on Tuesday, according to Benzinga Pro data.
The stock’s 52-week range of $19.93 to $35.81 highlights significant volatility, with the current price situated closer to the lower end of this range.
This positioning suggests that the stock may face challenges in gaining upward momentum unless it can break through key resistance levels.
Support levels appear to be forming around the $22 mark, while resistance is evident near the $23.50 level. A sustained move below $22 could trigger further selling, potentially leading to a test of the $19.93 support level, while a breakout above $23.50 may provide a more bullish outlook.
Read Also: Americans Feel Bleak Despite Strong Economy — Here’s Why
How To Buy GME Stock
By now you're likely curious about how to participate in the market for GameStop – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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