GameStop’s stock price has crawled back in the past few weeks as investors focus on the ongoing performance of the gaming industry. GME share price was trading at $39.45, which was about 105% above the lowest level this year. It has a market cap of over $12 billion, making it one of the biggest retailers in the country.
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Gaming sector worries
GameStop is a leading retailer that sells video games and consoles. The company’s net sales in the first quarter jumped by 8% to $1.4 billion. However, the revenue was slightly lower than the $1.3 billion it made in 2021. Its SG&A increased by 32.8% to $452 million, while its net loss rose to $157.9 million.
GameStop had about $1.04 billion in cash, which was about $340 million higher than where it was in the previous quarter. In addition, the company had an inventory of about $917.6 million. GGameStop’srevenue jumped from $5 billion in 2020 to over $6 billion in 2021.
The GameStop stock price has struggled in the past few days as concerns about the gaming industry continue. In addition, results from top companies in the sector like Activision Blizzard, Take-Two Interactive, and Nvidia have all shown that the sector is slowing. Therefore, this could also translate to weak performance by GME.
GameStop share price is also reacting to the performance of the NFT industry. The company partnered with Immutable X and Loopring to build its budding NFT marketplace. However, it is still unclear whether the marketplace will become successful or not.
GameStop stock price forecast
The daily chart shows that the GME share price has crawled back in the past few days. It has risen from a low of $19.05 on March 14 to about $40. Along the way, the shares have moved slightly above the 25-day moving average, while the MACD has moved above the neutral point. It has also formed what looks like an inverted head and shoulders pattern.
Therefore, the GameStop stock price will likely continue rising as bulls target the next key resistance point at $62.61, which is about 65% above the current level. A drop below the support point at $30 will invalidate the bullish view.