Shares of Gamestop (GME) returned to their MEME status – they never really stopped – following the posting of a photo with CEO Ryan Cohen and Strategy’s co-founder and chairman. Strategy is the largest corporate holder of bitcoin.
The photo, posted by Cohen on “X”, surged interest that Gamestop was plotting another strategy to enter the cryptocurrency market.
Cohen, co-founder of Chewy.com, joined Gamestop’s board in 2020 claiming that he would help to rebuild the brick-and-mortar business.
Gamestop’s real claim to fame is as a MEME stock, held widely by day traders. Shares have seen massive volatility in the wake of “events” like this, and those of “Roaring Kitty”.
Roaring Kitty is the YouTube personality that encourages buying from retail investors.
In 2024, Roaring Kitty held a widely publicized YouTube livestream during which he revealedhis increased holdings in the stock along with details on options contracts that the investor had purchased.
Since that stream, Gamestop shares have declined more than 50% to their current price of 28.86.
Shares recently shifted into a short-term bearish trend as the stock’s 50-day moving average is now in a declining pattern. The last similar shift in July 2024 resulted in a 22% decline in share value.
The stock’s 200-day moving average resides at $25, which is where investors should expect a an increase n selling pressure as the stock makes its way to a price target of $20.
