- Forex 40 +
If you as an investor followed the media reports in January, you could hardly believe it: While major investors were trying to make GameStop’s shares plummet, young investors decided to prevent this from happening. As a result, since mid-January, there has been a real rally for GameStop shares. In some cases, the share price rose by a whopping 1800%! From February 4, the price was back at a significantly lower level, around € 40. Amazingly, the rally seems to be starting again: On February 25, the price surprisingly rose by almost 200% to over € 130!
Accordingly, investors are now asking themselves: Buy GameStop shares or not?
You should pay attention to the following points when buying GameStop shares:
Is now the right time to start? How will GameStop evolve? What are the forecasts?
We cover the basic data on GameStop shares: price, valuation, prospects, analysis, forecasts, recommendations, history and tips on how and where to trade stocks easily online.
To be able to buy the GameStop share, you first have to register with a broker. It is advisable to pay particular attention to the deposit protection. Should the broker go bankrupt, the shares still belong to you. Anyone who waives this deposit protection will be left without shares in the event of the broker’s bankruptcy.
If stock selection and evaluation are too complicated, a social trading platform can also be a good solution. Here you simply follow an experienced trader and automatically copy the trader’s trading decisions.
Our broker recommendation at this point is TradeATF – with state-guaranteed deposit protection of up to 20,000 euros and 0% commission when buying shares, TradeATF is our test winner broker. To register with TradeATF, click here.
Once you’ve decided on a broker, the next step is to register and log in.
At TradeATF, you have several registration options. In addition to the option of creating a user account yourself, there is also the option of registering via a Facebook or Google account , which once again simplifies the process considerably.
To open an account, all you need in the first step is a username, email address and a strong password. With this, you first open a demo account with TradeATF, whereby you can trade unlimited with virtual credit.
However, if you want to buy GameStop shares, you can switch to live mode or simply make a deposit.
After registration, a payment is made to the customer account. In advance, you should, therefore, first, think about how much money you are willing to invest in GameStop shares. We generally recommend that you never invest more than 5% of your capital in a single share.
Once you have decided on the amount you want to invest, click the ” Add Money ” button.
You can now choose from various deposit methods, including PayPal , credit card or bank transfer. It should be noted that a bank transfer usually takes 2-3 working days for the credit to arrive on the customer account.
However, if you want to have your money in your account faster, there are other payment methods available
Below is an overview of all the payment methods available at TradeATF:
|Buy GameStop shares with a credit card||✔️|
|Buy GameStop shares with PayPal||✔️|
|Buy GameStop Stock with Skrill||✔️|
|Buy GameStop shares with bank transfer||✔️|
|Buy GameStop Stock with Neteller||✔️|
|Buy GameStop shares with UnionPay||✔️|
After the deposit, the money appears in your account under the menu item “Account”.
First, find the GameStop stock using the search bar above and then click the “ Trade ” button.
A small window will open (see screenshot) where you can set the price and the number of shares you want to buy. You can also set stop-loss and take-profit, i.e. at which price the share should be sold again in the event of a profit or loss. The two fields are optional.
The Leverage field allows you to control whether you want to buy the real share (x1 leverage) or a CFD (x2 or more leverage).
With a click on ” Place order ” the purchase is completed, and the share appears in your portfolio.
GameStop (GameStop Corporation) is a US retail chain for computer games and entertainment software. The company also sells merchandise from a wide variety of areas. The company is headquartered in Texas and operates more than 7,535 stores in 18 countries. There are 1200 branches in Europe alone .
GameStop was founded in 2000 and went public in February 2002. In 2005, GameStop acquired the computer game company EB-Games for USD 1.44 billion. This enabled GameStop to set up branches around the world. This created an economic boom through the resale and exchange of games and used hardware at a low price.
For this reason, GameStop has often come under criticism: The resale value was sometimes set much too high than the purchase value by players. In 2017, GameStop launched the Circle of Life program, which resulted in a further increase in resale value. The reason was that sellers had to achieve a certain quota.
This was followed by further restructuring. Among other things, you could buy a GameStop subscription. There was further criticism for security loopholes in credit card payments via the online shop.
The company’s value on the stock exchange has been falling since 2016 due to increased online trading. As early as 2016, branches began to be closed. In 2018, GameStop recorded the largest loss in company history to date, at $ 673 million. In 2019 it was announced that the company would like to close another 200 branches.
The corona crisis had severe negative consequences for GameStop. Many branches had to be closed during the pandemic. Since GameStop initially tried to defend itself against it, it came under criticism due to the lack of security measures.
As a result of the Corona crisis, video games were increasingly being sold and played again. The GameStop share also benefited from this, even if most branches are closed. The stock then hit a record high in January 2021 when investor Ryan Cohen stepped in to drive the online sales of video games.
There has been much discussion about the stock on social networks like Twitter and Reddit, which has led to many young investors getting on board. Previously, GameStop’s shares were sold short because the share price was expected to fall, and thus a profit was made. Hedge funds saw this as a profitable business.
However, with the demand from private investors, the share price rose so rapidly that all those short-selling investors were forced to liquidate their positions. To do this, you had to buy GameStop’s stock again – and at a tremendously high price. As a result, there was a shortage of tradable shares due to the high demand and a short squeeze was created . This caused the share price to skyrocket.
After the interest in the shares had subsided and many were selling their shares, the share levelled off in the range of € 40-50 after the January rally, only to rise again rapidly to over € 130 (+ 195%) on February 25, 2021. Once again, trading in Gamestop shares in the USA had to be suspended for hours and, as before in January, experts such as Charlie Munger from Berkshire Hathaway spoke up again and warned of the new development.
GameStop has struggled significantly over the past few years. While the share fell to a low of € 3 after the Corona crisis, it slowly recovered. The video retail chain has been on the verge of bankruptcy several times. Accordingly, young investors are now aiming to inject capital into the company.
Accordingly, the share has been climbing steadily since December. On December 31, 2020, the share was worth € 18. Then the rally and crash began, with the stock being worth over € 260 by now.
The current (02.25.21) share price is € 118. This is another extreme increase (+ 195%) in a short time, especially when you consider that the share was still trading for € 40 just one day earlier on February 24th, 21st. How far will the stock be able to go before that second bubble bursts? Investors are excited.
A current price target is difficult to forecast, as the massive interest in the paper is moving the price and expectations up and down rapidly. The average goal analysts set for stocks based on their fundamentals is just under € 11. From a fundamental point of view, one could say that the share is currently (02/25/2021) almost 1000% overvalued. In January, however, it was impressively evident that fundamental analysis does not always have to dictate the real stock market price.
So it remains exciting, and Gamestop remains a very speculative and risky investment. In no case should you invest more than a small amount of your capital in Game stock? But if you have some risk capital ready and can cope with the high risk, the Game stock could be a risky but worthwhile paper.
GameStop paid out a dividend in the past few years until 2019, but there is currently no dividend. Therefore, it is questionable whether there will be another dividend payment.
GameStop is currently traded as a kind of cult stock that is particularly popular with young investors. After one wanted to let the share fall, some users from the Internet, including from the Reddit portal, got together to drive the share up again. This is because GameStop wants to develop into a technology company that should inspire gamers.
GameStop cannot be stopped now, and the assessments of experts and analysts correspondingly differ. The question of how the share will develop cannot be answered on the basis of this.
Since the company has fared very badly over the past few years, GameStop shares can now be bought to advance the company’s visions and goals. Large investors had even bet that the GameStop share price would fall even further in 2020. So one was clearly wrong with these forecasts.
One reason to sell would, of course, be fear of the big bubble. The chances are that it will burst soon, as you saw when the tech bubble burst in 2000. Nevertheless, it is assumed that the course will be held in the near future.
For the time being, the volatility of the share is likely to continue, as experts estimate. However, it is now hoped that the company will succeed in reversing the trend and that the share will also rise sustainably.
Experts are currently not sure whether GameStop will manage to reverse the trend. However, GameStop is pursuing great goals: It would like to develop into a technology company that meets the requirements of today’s generation of gamers.
Accordingly, it can be worthwhile to get into the GameStop share now – but one must not ignore the risk that the bubble could burst – similar to the tech bubble in 2000.
We compare the fees of the largest brokers with the following example:
With these assumptions, we now compare the fees of Comdirect, TradeATF & Libertex :
|Deposit||for free||free||for free|
|Purchase fees||3.90 €||free||0.22%|
|Holding fees||for free||free||for free|
|Sales charges||3.90 €||spreads||0.22%|
|Total fees||€ 7.80||Reasonable||€ 4.40|
GameStop stock has risen a whopping 4,500% since early 2020. If you look at online brokers, you will now find the GameStop share as one of the most popular shares. Since the beginning of January, the share has gained another 900 per cent – according to experts, the strong upward trend will most likely continue.
Due to short-sellers, the stock was brought to its knees. There was speculation on falling market values, which led to users from the Internet resisting it. So the focus is currently on rising prices.
However, the risk should not be underestimated. You can’t predict whether the Reddit users’ plan will work out in the long term. The plan is to force short-sellers such as Citron Research to close their short positions by selling the stock.
There are currently no clear forecasts. However, should this gigantic bubble burst, there is a risk of a total loss for many young investors.
If you want to get into GameStop now, you should do so with manageable capital. Our recommendation is not to invest too much capital in GameStop shares. The price jumps are huge, but should the bubble burst? There is a risk of losing the capital invested.
Should the price stabilise, however, and the share as well, the future looks very good for GameStop. In the future, you could then also focus on newer business models that are tailored to the large gamer community.
So if you want to join GameStop, you should do so now! For this, we recommend our test winner, TradeATF, where you can easily purchase the share.
The share has increased by a massive 4500% since the beginning of 2020. after falling in February, the rally now appears to be continuing
GameStop is listed and tradable on the NYSE.
In the article, some ways are presented how you can get your own GameStop stock quickly. If you do not want to purchase the share directly, you also have the option of using CFDs to bet on rising or falling prices.
$13.53 BN is the market cap of the GameStop Corp.
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