So, apparently, this time around, the return of GameStop (NYSE:GME) as a meme stock will not go through unheralded, or unchallenged, by federal regulators. In fact, GameStop shares are down over 2.5% as the Securities and Exchange Commission (SEC) is taking aim at GameStop over this.
Indeed, the latest news has the SEC eyeing options trading that’s connected to GameStop, particularly as related to Keith Gill, the investor otherwise known as Roaring Kitty on Reddit’s r/wallstreetbets page. The report noted that Gill bought a substantial quantity of call options on GameStop before making a return to social media, which, in turn, sent shares skyrocketing.
But Gill’s investment in GameStop doesn’t come unchallenged in and of itself; reports note that Andrew Left—best known for starting Citron Research and short selling—continued betting against GameStop despite getting burned by said bet at the end of May. Indeed, Left opined that Gill’s play was “…more like manipulation…” than any kind of “solid investment thesis.”
But What Are You Buying In On?
For those who have been inside a physical GameStop store lately, you know it’s fundamentally different from what it used to be. Collectibles take up floor space; Funko Pop figurines stand where racks of used games once held point of place. And GameStop’s side ventures are literally strewn about. Just a couple weeks ago, GameStop announced plans to get in on buying and selling rare Pokemon cards, as long as they’ve been graded by the Professional Sports Authority (PSA), which GameStop is working with directly.
Meanwhile, GameStop also has a cryptocurrency connected to it, the so-called GME coin, which challenged the $0.02 level before falling back to sub-penny levels.
Is GameStop a Good Stock to Buy?
Turning to Wall Street, the lone analyst covering GME, Wedbush Securities’ Michael Pachter, has a Sell rating after the stock price rallied 13.47% over the past year. However, he does not have a price target on GME shares.
