Well folks, Gamestop continues to break the brain of Wall Streeters who still question the company's existence. Over four years ago, the company was on its deathbed as most investors looked at the stock as a hospice patient. 

(Source: Reddit)

However, with a little help from Robinhood himself (Roaring Kitty) and Robinhood the trading app, the stock has soared as it’s still sitting +308% above its pre-stonk levels. Yet, while most investors' eyes were glued to the Nvidia “coming out” party this week- anxiously waiting to see the goodies of what the third most valuable tech company in the world had to give them…

Gamestop came out of the woodworks to reclaim its “King of the Hill” aura amongst Wall Street Bets and other trading degenerates. “Lemme guess, Roaring Kitty posted something cryptic on twitter?” 

(Source: Giphy) 

Nope. Not a sniff my friend. Instead, Gamestop has announced that it’s not only going “Retro”, bringing a sense of nostalgic frenzy in some of its stores, but they’ve also just ended a $250 million credit agreement with the King of Scam itself, Wells Fargo. 

Interesting, more details please…

(Source: Giphy) 

In short, the company has quite literally been out of the game since Phase 2 of its nonsense meme stonk hype at the beginning of the summer. Where Roaring Kitty announced a massive position in the stonk amounting to $115 million, with call options worth an additional $65 million on the table. 

However, without a clear catalyst to keep the momentum going for regards staring at the stock 24/7 in their moms basement, the fatigue has been real af the past few months. 

(Source: Barchart) 

But, but, but… that all seems to have changed as the stock pumped to a peak of +9.38% yesterday, making everyone of its meme stonk bandwagoners throb with greed. First and foremost, the main injection of enthusiasm came with the fact that the company is legit turning some of it’s locations into a “Retro” type Disneyland where they’ll only be selling older consoles and games for old school players, think: Wii, Xbox 360, and SEGA classics. 

(Source: Fortune) 

Of course, the company has not come out with a specific amount of stores it will transform into a Retro like “Lotus Hotel”, but they have initiated a GameStop retro store tracker to its website where obsessive gamers can scavenger hunt these new spots. 

(Source: USA Today)

So why are they doing this, you ask? Well simply put, the company is betting that leaning into fan-favorite games for history’s greatest consoles, will boost sluggish sales - especially considering analysts are expecting the company to report a loss per $0.09 in its next earnings report (compared to a $0.03 loss per share in the same period last year).

Yet, while analysts have set their expectations at $805.67 million, indicating a -23% YoY plunge, this new edition into attracting its OG consumers may just be the jet fuel Gamestop needs to get its financials back to the moon. 

(Source: Tip Ranks) 

Keep in mind, this is also following the already optimistic moves that the company made in May of this year where they raised $933 million in cash from selling 45 million shares, and selling an additional 75 million in June, adding another $2.10 billion in cash. So clearly, the company is still pumping and chugging along…

Which is why, the news of the closing of its $250 million credit agreement with Wells Fargo also provides an additional dose of investor confidence this week. Why? Well, because by ending the agreement based on relying on banks to feed the company money, (ultimately paying massive amounts of interest on the debt) this move signifies that it’s solely relying on retail investors to cash in rounds of the meme stock, and institutional investors trying to catch the bandwagon momentum. See: Gamestop taking off its training wheels.

(Source: Market Watch) 

So in a sense, Gamestop is actually making more money off its cash holdings than its actual business operations at this point - (creating shares out of thin air, and selling them for more than they’re worth without paying any interest). Which going back to the nostalgia move for the company, is another reason for the “Retro” decision. 

(Source: Sherwood) 

Now with that said, what’s the takeaway here for investors? In short, it’s clear that Ryan Cohen, another meme stonk King, is making some savvy moves to keep the excitement in the air. 

However, despite the stock being up a nice $21.5% YTD and its new strategic moves in the pipeline, analyst sentiment and the stock’s price action is definitely lagging YOLO vibes. For instance, the consensus price target sweeping the street is still sitting at a price target of $15.30, indicating a blistering -28.8% downside.

The technicals? Not much better as 12 out of 17 of our Stocks.News indicators are screaming “Strong Sell”, while 10 out of 15 moving averages suggest more downtrend continuation. Not surprising though, the only appealing metric that Gamestop has is its 9.77% of short interest. Shocker…

Which really, is still the only “bullish” sign that keeps every Wall Street Bets regard checking their positions every 5 friggin seconds in hopes of another massive short squeeze. However, for you slick, and sophisticated Stocks.News investors, I’m sure you know that’s not enough juice to make the risk worth it… as of now anyway. 

So until Ryan Cohen can actually transform the fundamentals, the technicals, and analysts sentiment to match its meme stock hype… it’s a mixed bag right now. However, it will definitely be interesting to see what additional revenue the new “Retro” locations could add to Gamestops bottom line, combined with the companies' newfound freedom away from Wells Fargo. 

(Source: Giphy) 

In the end, you know the drill, keep an eye on Gamestop today. As we know, all bets are off when it comes to this stonk, and who knows - with these new strategic moves in place, Roaring Kitty may come out of hiding with a new bet on the table, sending everyone and their friggin grandma on the next HODL train. 

(Source: Giphy) 

Oh and before I forget, congrats to all our Stocks.News premium members as our explosive alert on Tuesday shot up a seismic 160% in less than 72 hours! Could today’s alert follow suit? Only time will tell, but make sure you keep an eye out for the ticker - it’ll be coming to you soon. 

For those of you not a premium member, hurry and upgrade immediately to get in on the action - especially considering that our last three previous “secret alerts” all exploded to peak moves of +110.10%, +96.60%, and +300%... in LESS than 24 hours!  

In the meantime, stay safe and stay frosty this Friday, friends! Until next time… 

Stocks.News does not hold positions in any company mentioned in the article.