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How To Buy GameStop Stock (GME)

GameStop Corp. sells video games, electronic products, and wireless services. Since the historic short squeeze in January, there has frequently been a negative connection between GameStop and the SPDR S&P 500. Our guide will show you how you can start investing in Gamestop stock today!

Quick GameStop Stock History 

This retailer is based in Grapevine, Texas and is the world’s most successful game store. GameStop was established in Dallas in 1984, and it adopted its present name in 1999. The company’s performance started to fall a few years ago as a result of the shift in physical sales to online buying and downloadable content.

In 2005, GameStop paid $1.4 billion for EB Games. GameStop’s business was expanded across Europe, Canada, Australia, and New Zealand as a result of the deal. Rhino Video Games was purchased by GameStop from Blockbuster LLC back in 2007. 

At GameStop customers may also return their unwanted video games, accessories, and technology for cash or trade credit at GameStop. To help halt the spread of COVID-19, the government ordered GameStop to shut down all 3,500 of its shops from March to May 2020.

Recently the company’s stock price surged in 2021 as a result of a short squeeze coordinated by users of the Internet community r/wallstreetbets. Due to the extreme volatility of its stock price, the corporation garnered a lot of media coverage. 

The Good and the Bad of GameStop Stock

There are several advantages to holding stock or shares in a corporation. Here are some of the benefits and drawbacks of owning a stake of GameStop.

Pros of Owning GameStop Stock 

  • Excessive optimism for the stock has provided GameStop with a much-needed lifeline, allowing it to obtain funds and restore its struggling retail operation.
  • The business strategy and financials of GameStop suggest that there is a lot of room for additional growth.

Cons of Owning GameStop Stock 

  • With the emergence of downloadable video game sales, GameStop became an unneeded intermediary since gamers were able to purchase games more conveniently from manufacturers online.

Outlook for GameStop Stock

In January 2021, a short squeeze caused a 1,500% spike in GameStop’s stock price over the span of nearly three weeks, hitting an all-time trading high of US$483.00. The Reddit community r/wallstreetbets, a subreddit dedicated to equities with significant market risk, was largely responsible for this effect.

GameStop said in February 2021 that its finance leader, Jim Bell, who was hired in June 2019, will depart the firm on March 26, 2021. Also, George Sherman revealed in April 2021 that he will step down as CEO of GameStop on July 31, 2021.

Net sales declined 21% to slightly about $5.1 billion in fiscal 2020. Net sales in the fourth quarter of fiscal 2020 declined by only 3% from the same period last year. Shares of GameStop (GME) fell 12.6 percent to $222 on May 28th, after reaching a session high of $268.79. GameStop’s stock increased by 25% throughout the course of the week.

Steps to Buy GameStop Stock

To purchase GameStop stock, you have to work on opening a brokerage account, then you need to open up a trading account, you must deposit money into your account, and then begin purchasing shares. 

Step 1: Select a Brokerage

The stock is now available for purchase through all major brokerages. You will need a brokerage account to invest in GameStop. Consider creating a brokerage account now, if you haven’t done so already, so that you are ready to purchase stock as soon as you are ready.

Step 2: Open the Trading Account

After you’ve decided on the best brokerage for you, you’ll need to open an account with them. You will use this account to post transactions and exchange stocks at specific times and rates. 

Step 3: Deposit Funds Into the Account

You’ll be able to deposit funds to buy GameStop stock after you’ve attached an acceptable form of payment to your account. You will need to determine how many shares of GameStop stock you want to purchase once your account is officially activated.

Step 4: Search for the GameStop Ticker Symbol (GME)

Find the stock using the name or ticker symbol “GME” and do some homework before determining if it’s a solid investment for you.

Step 5: Purchase GameStop Stock

At the bottom of each page, brokers will have a “deal ticket” where you can place your order. On the broker’s order form, you’ll insert the sign and the amount of shares you would like to buy. In a market order, you can buy as many shares as you choose, or you can use a limit order to postpone the buying before the stock hits a certain amount.

Is GameStop Stock a Good Buy?

GME stock is unquestionably an exciting investment opportunity. In early 2021, it was a short-term speculation success. Many investors who bought GME shares early on certainly benefited enormously. The enormous short interest that fueled GME stock’s surge is beginning to slow down. GameStop was able to pay off its large debt thanks to the stock surge.

This week, GameStop stock has risen again, due to a renewed wave of interest in the video game retailer. GameStop could fall or plummet. It’s really hard to predict at this point in time. Their stock is still extremely volatile as of today, so be cautious and informed when choosing to invest. If you are considering investing in GME shares on the stock market, then you should consider contacting a financial advisor.