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GameStop (GME) Shares Are Up 34% This Year. Will It Continue?

Simon Mugo trader
Updated 30 Jun 2023

The GameStop Corp (NYSE: GME) share price has risen 34% since the year began leaving many wondering whether the rally will continue. The short answer is that while the rally in GME shares is impressive, the business case for Gamestop remains uncertain.


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The company’s share price recently rallied higher after Ryan Cohen, Gamestop’s Executive Chairman, bought 443,842 shares worth $10 million. The Chairman purchased through RC Ventures LLC, his investment vehicle.

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Insider purchases are usually a good sign in any company, but not always. Gamestop remains a troubled business in a secular decline since it has yet to launch any viable new business line to complement its current video game rental business. 

Intelligent investors should look at Gamestop with caution away from its meme stock madness and ask themselves what the company’s future is. Does Gamestop have a real future? What is its outlook for the next five years? 

The company raised money during the meme stock rally and did little with it apart from saying it was considering launching other products and services. Since then, everything has stayed the same at Gamestop, its primary business still being video game rentals. 

Gamestop has also had five CEOs in the past five years and three CFOs in the same period, which speaks to the instability at the company as no CEO is given adequate time to implement their chosen business strategy, which should typically take a few years. 

The company needs to pivot into another business line with more excellent long-term prospects, which makes its long-term future insecure. Therefore, investors should consider this when deciding whether to buy Gamestop shares. 

Gamestop also has a history of communicating poorly with investors after cancelling its latest investors and analysts' call, which left many disappointed. All this does not inspire confidence in the company’s prospects; hence, I would stay away from Gamestop shares entirely. 

*This is not investment advice. 

The GameStop (GME) share price. 

The Gamestop share price has risen 34% this year. Will the rally continue? 


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading