By Kuldip K. Ambastha
GameStop Corporation (GME), a video game retailer, had an up-and-down trading week for its stock with three negative daily returns and one positive daily return. (Monday, July 4, 2022 was an American holiday – Independence Day / Fourth of July – and thus not a trading day.) (See past coverage if needed: “What Caught Our Attention in the Investment World? – Week of February 1-5, 2021; By Kuldip K. Ambastha” and “What Caught Our Attention in the Investment World? – Week of January 25-29, 2021; By Kuldip K. Ambastha.”) In a weakening economy, GameStop may be administering layoffs in the near future. Also, the company’s Chief Financial Officer (CFO) will be leaving his position soon. These two points negatively affected the company’s stock on most days of the trading week.
That said, on Thursday, July 7, 2022, the stock increased by a significant +15.1% for the day because of the announcement of a 4-for-1 stock split. GameStop Corporation, a meme stock coveted by speculators, clearly is in volatile times and may or may not be able to execute a successful turnaround in the future. When it comes to GameStop Corporation, this trading week was a prime example of how positive and negative news items can drive a stock’s daily returns.
Disclosure – The principals and clients of Ambastha Financial LLC have no positions in GME.
Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2022 – Ambastha Financial LLC.