GameStop Stock (GME) Skyrockets Today: What’s Fueling the Surge?

GameStop shares just ripped through another rally—retail traders are piling back in with meme-stock fervor.

Meme Momentum Returns

Social media chatter lit up overnight, sparking another wave of buy orders. The classic 'stonks' narrative is back in play, pushing GME into double-digit percentage gains before noon.

Short Squeeze Speculation

Traders are betting against short sellers again, hoping to trigger another gamma squeeze. Options activity surged as calls outpaced puts three-to-one—classic WallStreetBets energy.

Zero Fundamental Shift

No earnings catalyst, no blockbuster news—just pure, unadulterated sentiment driving the action. Because why let boring old financials get in the way of a good story?

Another day, another reminder that in today's market, vibes sometimes beat valuation models. Whether it holds or not? That's the multi-million dollar gamble.

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This marks the fifth straight quarter in which GameStop has both posted a profit and exceeded Wall Street expectations, signaling that its turnaround efforts are gaining traction.

GameStop’s Hardware and Collectibles Drive Growth

GameStop attributed its solid quarterly performance to Hardware and accessories sales, which ROSE 31% year-over-year to $592.1 million. A majority of this growth was driven by the release of the Nintendo (NTDOY) Switch 2 video game console during the quarter.

Additionally, the company’s strategic shift towards digital storefronts and exclusive collectibles has garnered strong customer interest. In Q2, revenue from Collectibles surged 63% year-over-year to $227.6 million. On the other hand, Software revenue took a hit, declining 27% to $152.5 million compared to the same period last year.

Meanwhile, GameStop also reported that its Bitcoin holdings at the end of Fiscal Q2 were valued at $528.6 million, as part of its cryptocurrency treasury strategy.

Investors seem impressed by GameStop’s financial performance as it delivers steady profits and expands in collectibles and digital sales. However, declining software sales and the risks from cryptocurrency holdings remain key concerns.

Is GME Stock a Buy, Hold, or Sell?

On TipRanks, only one analyst has rated GameStop stock in the past three months, based on which GME stock has a Moderate Buy consensus rating. However, more analysts could review the company following its Q2 results.

Nonetheless, TipRanks’ Technical Analysis Tool shows a Buy consensus based on 11 Bullish, four Neutral, and seven Bearish indicators.