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GameStop - AI Stock Analysis
Analysis generated May 22, 2025
GameStop Corp. is a retailer that primarily offers video gaming consoles, software, and accessories, both new and pre-owned. The company also deals in mobile and consumer electronics. Over the past few years, GameStop has become widely known not just for its retail operations but also for being at the center of a major stock market phenomenon prompted by retail investors.
Fundamental Analysis
GameStop's revenue for the last quarter was $1.28 billion. This marks a significant increase of 49.09% compared to the previous quarter, which is a strong indication of growth. However, it is important to note that this figure represents a decrease of 28.49% compared to the same quarter last year, which could be concerning.
Net income for the last quarter stood at $131 million. This represents a remarkable increase of 654.60% compared to the quarter before it, showcasing significant profitability gains. Additionally, the net income has grown by 108.08% compared to the same quarter last year, indicating ongoing positive year-over-year growth.
The EBITDA for the last quarter came in at $87 million, rising by 633.13% compared to the previous quarter. However, this figure represents a slight decline of 3.01% compared to the same period last year, which might indicate some operational challenges.
The current P/E ratio stands at 86.39, which is relatively high. This could suggest that the stock is overvalued, leading to a potentially bearish outlook as the high valuation might not be sustainable without consistent growth.
Technical Analysis
Today’s stock price is $29.92. This marks an increase of 7.63% compared to a month ago, signaling a positive short-term trend. Over the longer term, the stock price has risen by a notable 63.32% compared to a year ago, suggesting a strong bullish trend.
The current SMA10 is 28.55, compared to the previous SMA10 of 28.36, indicating an upward trend in price movement. The RSI is at 88.9, which suggests that the stock is potentially overbought and may be due for a correction, indicating a bearish condition.
Alternative Data Analysis
GameStop has 6,433 open positions, up by 43% in the last couple of months. This could indicate growth and expansion, a healthy sign for the company.
Employee sentiment at GameStop indicates that only 21% of employees have a positive outlook, a concerning sign. Nonetheless, this sentiment has improved by 11% over the last couple of months, indicating a positive trend.
GameStop attracts an estimated 18 million website visitors monthly, with no significant fluctuations recently. Additionally, their mobile app sees approximately 2,400 downloads daily, up by 32% in the past few months, suggesting potential customer acquisition growth.
The company also has strong social media engagement, with 2.3 million Instagram followers and 1.9 million Twitter followers. The AltIndex AI score for GameStop is 54, a hold signal based on fundamental, technical, and alternative data analysis.
Conclusion and Recommendation
In conclusion, GameStop shows mixed signals across various analytics. The company has shown strong growth in the last quarter compared to the previous quarter, particularly in net income and EBITDA. However, these growth numbers have not consistently translated year-over-year. The high P/E ratio also suggests the stock may be overvalued.
On the technical front, the stock price is on an upward trajectory with a bullish trend over the long term. However, the high RSI indicates that the stock is overbought and may face a pullback.
Alternative data reveals a mixed but trending positive outlook. While employee sentiment is generally low, it is improving, and the rise in job openings and app downloads indicates potential future growth.
Based on the gathered data, the recommendation is to hold the stock. The bullish technical trend and positive short-term growth indicators are promising, but the high valuation and overbought conditions warrant caution.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
