Analysts adjust GameStops stock price target
In the early days of May 2024, GameStop (NYSE: GME) burst back into the spotlight, with its stock price soaring as Keith Gill, also known as the Roaring Kitty, made a grand return. June proved to be an eventful month as Gill showcased his GME position, hosted a live stream focused on the meme stock, and GameStop itself conducted a fresh stock offering following its shares reaching highs of $48.
Despite the buzz, Wedbush, an analysis firm, took the opportunity to reiterate its ‘underperform’ rating for the meme stock and reduced the 12-month price target from $13.50 to $11. The analysts were bearish due to the recent sale of 75 million shares by GameStop, which did not raise as much money as expected.
Although GameStop closed around $46 on June 6, the stock was expected to be sold at an average price of $40, but GameStop actually sold it at an average of $28.50, resulting in a significant difference of over $860 million. This turmoil led some long-standing bears to reconsider their positions, with GameStop stock trading below its monthly highs but still far from its usual 2024 range between $10 and $16, currently standing at $28.70.
Citron Research, a company that had previously opposed the apes during the original meme stock craze, declared on June 12 that it was abandoning its short position against GameStop. The company acknowledged that it did not foresee any fundamental changes that would make GME more promising but acknowledged the unpredictable nature of the stock market.
In a surprising turn of events, Andrew Tate, another internet personality with a luxurious car collection, joined the GameStop frenzy by purchasing over 2,000 GME shares in June and pledging to hold onto them. Additionally, RFK Jr., the independent presidential candidate, announced that he had invested $24,000 in late May in support of the movement.
The ongoing resurgence of GameStop is not limited to retail investors and influencers, as it continues to attract attention from various quarters.
