GameStop: Priced For Turnaround Perfection (Technical Analysis)

Bay Area Ideas
2.06K Followers
(12min)

Summary

  • GameStop's technical outlook is currently mixed as the moving averages remain bullish, but the chart and indicators show signs of weakness.
  • Q4 earnings showed signs of a turnaround occurring. If the company is able to meet expectations for Q1, improvements will continue.
  • The P/S ratio has surged to a far above-average level and is at a major premium to the sector, showing investors are pricing in a perfect turnaround.
  • With mixed technicals and overvaluation, I believe GameStop is a sell even as the company is starting to turn the page.

GameStop Store in Munich, Germany

Anne Czichos

Intro

Former meme-stock GameStop Corp. (NYSE:GME) successfully retraced its January to April down move, but the technicals have now become mixed. In the below analysis, it is determined that the chart has become bearish while the moving averages show

This article was written by

2.06K Followers
I'm a full-time investor with a strong focus on the tech sector. I graduated with a Bachelor of Commerce Degree with Distinction, major in Finance. I'm also a proud lifetime member of the Beta Gamma Sigma International Business Honour Society.My motto is John Pierpont Morgan's phrase: 'First-Class Business In A First-Class Way.' I strive to be a premier provider of technical analysis articles on Seeking Alpha by sharing high-quality in-depth pieces with our community of readers.My core values are: Excellence, Integrity, Transparency, & Respect. I always, to the best of my ability, hold true to these values which I believe are key for long-term success.Lastly, I would like to invite all of my readers to leave their constructive criticism and feedback in the comments section so that I can further enhance the quality of my work moving forward. Thank you and God Bless America!

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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