Gamestop (GME) shares turned in an exciting day after the Meme stock rallied 13% to their intraday highs of $30.74. Shares settled into a lower price range following the initial surge, closing roughly 7% higher for the day.
The move was sparked by short-term investors’ reaction to a new post on “X” – formerly known as Twitter – from the king of Meme Trading, “Roaring Kitty”.
The post was a simple image of a YouTube broadcasting a blank image, suggesting that the online investing personality may soon take to the screen again. In the Meme world, this is all it takes to make Gamestop shares jump to life.
Investors will remember a similar situation in May when Roaring Kitty teased a YouTube broadcast to talk about his outlook for Gamestop stock. Shares of Gamestop jumped more than 100% as the internet personality conducted his live stream.
The excitement behind Roaring Kitty’s last stream was short-lived as Gamestop shares quickly dropped from $60 to $20 as investors cooled to the idea that the largest holder of Gamestop stock had any material impact.
Gamestop shares have since spent the summer bouncing from that $20 price, which is also where the stock’s 20-month moving average resides. The stock remains in a long-term bull market trend as a result of that support.
More recently, Gamestop stock has rallied to round-numbered resistance at $30.
The stock’s recent pause comes ahead of Gamestop’s earnings call slated for December 10.
Analyst expect the company to lose $0.03 per share as Gamestop’s revenue has been trending lower by -30% per quarter.
Today’s rally is likely to increase expectations of the earnings report as a “buy the news” event.
Investors should expect that any disappointment from GME’s report next week will target a return to $20.
