Financial Insights That Matter
GameStop Corp GME shares surged 5.9% to $29.71 Thursday morning, despite a lack of company-specific news for the session. The rally is potentially being driven by renewed retail enthusiasm and rising crypto market momentum as Bitcoin hit a record high above $111,000. GameStop’s strategic pivot toward digital assets earlier this year could be a focal point as well.
What To Know: Back in February, GME stock popped after CEO Ryan Cohen posted a photo with Strategy Chairman Michael Saylorsparking speculation that GameStop was exploring a deeper involvement with Bitcoin.
Strategy is the largest corporate holder of Bitcoin. While GameStop shut down its NFT marketplace and crypto wallet offerings in 2023 due to regulatory concerns, the photo signaled a potential return to the space.
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Those hints became reality in March when GameStop announced fourth-quarter earnings and revealed its board had unanimously approved Bitcoin as a treasury reserve asset. The update to its investment policy marked a major shift, aligning GameStop with other crypto-forward firms.
Although fourth-quarter revenue missed expectations at $1.283 billion, earnings of 30 cents per share handily beat forecasts, and net income more than doubled year-over-year to $131.3 million. The company ended the quarter with $4.78 billion in cash and equivalents.
GameStop did not hold a conference call to discuss results, but the crypto pivot and Cohen’s increased personal control of over 36 million shares have fueled ongoing speculation. As Bitcoin drives broader market gains, GameStop’s strategic moves and meme-stock status could be helping push its stock higher once again.
Read Also: Jiuzi Holdings Stock Swings Amid Bitcoin Acquisition Plan
How To Buy GME Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in GameStop’s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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