Buying GameStop stock is a great way to invest in the consumer electronics industry. The company is the largest retailer of video game products in the world. The company is headquartered in Grapevine, Texas.
Beta
Considering the current share price of GameStop Corporation stock, it is safe to say that the company has outperformed the market in the last year or two. The company has seen a significant increase in its share price. In the last month alone, the share price rose by nearly 2,440 percent. In fact, the company’s share price reached an all-time intraday high of $483 on January 28. The most recent quarterly earnings report showed a $.31 per share loss.
The most important thing to know about the company’s shares is that they are listed on the New York Stock Exchange (NYSE) under the ticker symbol GME. The company’s stock is part of the S&P 600 index, a group of American small-cap stocks. Typically, the S&P 500 is used to measure the performance of U.S.-based stocks.
The company’s most recent earnings report showed a -$164 million loss in revenue. Considering that the company’s operating data is in millions of dollars, the actual monetary loss is not that great.
Correlation to the SPY ETF
Investing in an exchange-traded fund (ETF) like SPY can help you diversify your portfolio. ETFs are investments that track different markets, commodities, countries, and sectors.
The SPY ETF is an exchange-traded fund that tracks the performance of the Standard & Poor’s 500 indexes. This index is composed of the 500 largest companies in the U.S. The S&P 500 index has been around since 1926. In that time, it has become the benchmark for trillions of dollars of investment.
In some years, the stock market performs well, while other years are choppy. Having a diversified portfolio can mitigate risk during a rough market.
Correlation measures the degree of relationship between two stocks. When a stock’s price moves up, it means that another stock’s price has gone down. Generally, positive returns are more common than negative ones. Using correlation is a tool to build a diversified portfolio for the long term.
Currently, the S&P 500 is down over 16% in 2022. That’s due to inflation and rising interest rates. In order to protect your money, you can invest in TLT bonds, which act as a hedge against the general stock market.
Earnings results
Those looking to buy or sell GameStop stock will want to be well-informed about its recent performance. The stock is down over 25% for the year, a significant drop for a company that is primarily owned by retail investors. Its last earnings report was on March 28.
The company has not announced a schedule for upcoming reports. The stock remains above $23 in the short term, but below $25 in the long term. The stock has been trading in a consolidated range since early September.
It will be interesting to see if GME can bounce back from its short-term slump. Analysts are expecting the company to report a number of new achievements in the way of revenue and earnings growth in the third quarter of the year. In addition to reporting on its NFT marketplace results, the company will also report on total shares directly registered with Computershare.
It is also important to note that the company is in the middle of a cost-cutting initiative that is expected to improve profitability in the near future. This means that the company will have to report on a wide variety of cost reductions and that they may have to make some bold claims in the near future.
Shares in the S&P 600 Index
Earlier this week, GameStop (NYSE: GME) shares dropped from the S&P 600 Index. While the stock is still among the top 10 holdings of the RWJ Fund, the stock has fallen from 13% weighting to 2%. The stock will now join the S&P MidCap 400, replacing Weingarten Realty Investors.
The S&P 600 index tracks companies with liquidity and financial viability. The index does not include promoters’ or government holdings. This means that successful companies may be removed from the index when they go through a merger or delisting from a stock exchange.
In the latest quarter, Red Robin had $205 million in debt and no profit. This year, the company expects to lose money. The stock has also plummeted 70% in the last year.
Red Robin owns real estate for 37 restaurants. It is expected to return to profitability in 2023. The company currently trades at 23x the consensus estimates for 2023.
The company reported a 1 to 4 split as of the end of July. The engineering team is working on a solution for providing split-adjusted figures.
