GameStop Stock Edges Higher Tuesday: What's Going On?

GameStop Corp (NYSE:GME) shares are trading marginally higher Tuesday afternoon but remain about 7% lower for February as traders digest recent headlines. Here’s what investors need to know.

• GameStop stock is building positive momentum. Why is GME stock trading higher?

Cohen Outlines $100B Acquisition Vision

The stock has been volatile as investors assess recent, renewed insider buying and commentary from "Big Short" investor Michael Burry and CEO Ryan Cohen.

In a late January interview, Cohen told The Wall Street Journal he wants to turn GameStop into a $100 billion-plus conglomerate via a "big" acquisition of a public consumer or retail company. He warned the bet could prove "genius or totally, totally foolish."

Cohen Signals Confidence In Turnaround

Burry in January disclosed that he's been buying GME, likening Cohen's strategy to Warren Buffett's early Berkshire Hathaway playbook. Cohen also scooped up one million shares in January at roughly $21 apiece, lifting his holdings to about 42.1 million shares, or roughly 9.3% of the company.

Meanwhile, in early February, Fox Business host Charles Payne said he postponed an interview because Cohen was "working on something monumental" he wasn't ready to reveal.

Earnings Loom Amid Premium Valuation

Looking further out, the next major catalyst for the stock arrives with the March 24 earnings report.

• EPS Estimate: 31 cents (Up from 30 cents)
• Revenue Estimate: $1.47 billion (Up from $1.28 billion)
• Valuation: P/E of 26.9x (Indicates premium valuation)

GameStop’s Mixed Technical Signals

Currently, GameStop is trading 1.1% below its 20-day simple moving average (SMA) but is 5.3% above its 100-day SMA, indicating a mixed short-term outlook while maintaining longer-term strength.

Over the past 12 months, shares have decreased by 4.56%, and they are positioned closer to their 52-week lows than highs.

The RSI is at 50.84, which is considered neutral territory, suggesting that the stock is not currently overbought or oversold. Meanwhile, the MACD is at 0.3069, below its signal line at 0.4924, indicating bearish pressure on the stock.

The combination of neutral RSI and bearish MACD suggests mixed momentum, indicating that traders should watch for potential shifts in sentiment.

• Key Resistance: $26.00
• Key Support: $20.50

Benzinga Edge Rankings

Benzinga Edge stock rankings show GameStop carries a standout Growth score of 95.77, even as its Momentum score lags at 27.81.

GME Shares Edge Higher Tuesday

GME Price Action: GameStop shares were up 1.40% at $23.97 at the time of publication on Tuesday, according to Benzinga Pro data.

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