In the post GameStop stock rally proves media wrong, again, 2021, I wrote “The GameStop gains are going to hold and it will keep going up.” Today it’s only down 50% from its 2021 highs , which is less than Bitcoin (down 66%). It’s up 11% today, and also the gains have held contrary to the collective wisdom of the financial media at the time, which predicted GameStop would fall back to single digits or low double-digits by now (pre-spilt).
GME did a 4-1 split a few weeks ago, so $45 today is $180 pre-split, which is only 50% below its record highs.
There are a few factors working to GameStop’s advantage: due to the massive stock appreciation, it has enough cash to run for decades; second, GameStop is in a hype cycle, which means there is a huge and active online investment community surrounding it and thus an abundance of sideline cash that may reenter without warning or any obvious provocation, like what is happening today.
It just goes to show how these overrated, overpaid analysts and pundits are more wrong more often than not, and that random bloggers or random people on Reddit or on Twitter are a better source of insight most of the time.