Is GameStop (GME) Preparing For Rally After The Consolidation Phase?

Video game retailer GameStop Corp (NYSE: GME) has been in considerable focus this year after pretty much leading the ‘meme stocks’ rally earlier on in 2021.

The coordinated action from Reddit users had resulted in a remarkable rally in the penny stock as the stock price continued to rise after short-sellers were forced to cover their positions. It is a move that is known as a short squeeze. However, many feel that another similar short squeeze could happen soon and some have even gone on to state that the stock price could eventually hit $1000.

While that may cause a certain degree of optimism among several investors, it is also necessary to point out that GameStop might be on the verge of issuing new shares. If that happens then it might have a negative effect on the stock and that remains a significant risk for many investors. At this point, investors could consider keeping the GameStop stock on their watch lists.

Michael Rowels

Weekend Contributor.Writing for business and finance publishers has become his passion over the last decades after he completed a master's degree in Financial Management. Sharing some opinions and forecasts to thousands of readers is a routine job for him but he never promises to invest in one stock.

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