If you didn't get burned investing in GameStop (NYSE: GME) back in 2021... don't fret. You've got another chance now. Unfortunately, the so-called "meme" stock is back. It's up a whopping 350% in May so far. If that sounds appealing, consider that the stock soared more than 2,000% in January of 2021 - only to lose 87% of its value over the next three years. But you might ask, "Why would investors bid up the price of this slowly failing retail outlet that still sells physical copies of games on discs as gamers migrate to digital downloads, sending its annual revenue lower almost every year?" Because of Roaring Kitty, of course. Yes, it sounds absurd, but that's the online moniker of financial analyst Keith Gill, who pumped up the stock in online boards and created a sort of frenzy for it among retail investors. He did that in 2021, and it seems he's back. That has reignited interest among investors who chase meme stocks (which you could define as companies that have a cult-like following on social media... and not much else going for them). Here's a five-year chart of GameStop... |
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