Bitcoin Probably Won’t Fix GameStop’s Troubles
Things aren’t looking great for GameStop Corporation‘s (NYSE:GME), if you ask Wedbush Securities’ Michael Pachter.
The video-game retailer’s Bitcoin investments probably won’t inspire hordes of investors to pile into its stock, while there are no signs of a potential recovery in its core business, Pachter suggested in a research note published Wednesday. The analyst maintained an Underperform rating on GameStop with a $13.50 price target.
The name that defined the meme-stock era has slumped almost 19% from a one-year high reached at the end of May, and traded at around $29 on Wednesday. At the height of that viral investing trend in 2021, the stock had surged to levels above $120.
GameStop reported first-quarter revenue of $732.4 million on Tuesday, missing analyst estimates of $754.24 million. The company reported first-quarter adjusted earnings of 17 cents per share, beating analyst estimates of four cents per share, according to Benzinga Pro. The company said it had purchased 4,710 bitcoins between May 3 and June 10 using cash.
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