GameStop’s Bitcoin Bonanza: Will It Save the Day or Just Crash and Burn? 💸

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Hold onto your controllers, folks! GameStop’s stock is about to take center stage this week as it reveals its first earnings report since diving headfirst into the Bitcoin pool. Spoiler alert: it’s not a kiddie pool! 🏊‍♂️

Last week, GameStop’s stock closed at a thrilling $29.58, which is a whopping 16% drop from its peak this year. I mean, who needs a rollercoaster when you have GameStop stock? 🎢 Its market cap is still over $13 billion, which is more than my entire life savings (and I’m not even kidding). 💰

Wall Street analysts are predicting that GameStop’s core business results will show more weakness than my willpower at a buffet. They estimate revenue will be $754 million, down 14.47% from last year. Ouch! 📉

For the second quarter, analysts expect guidance to be $748 million, down 6.28% year over year. If this keeps up, GameStop might need to start selling lemonade on the corner just to make ends meet! 🍋

These numbers are just a continuation of the trend. GameStop’s annual revenue has plummeted from $6 billion in 2022 to $5.27 billion in 2023, and now it’s at $3.8 billion. At this rate, they’ll be selling used games for pennies! 💸

Analysts are worried that GameStop’s core business might go extinct faster than a Blockbuster video rental. This is why they’re trying to channel their inner Michael Saylor and emulate Strategy, a company that’s now worth over $100 billion thanks to its Bitcoin stash. Talk about a glow-up! ✨

Speaking of Bitcoin, GameStop is now one of the biggest holders, with 4,710 coins valued at over $497 million. They’re hoping to keep buying more, which is great, but I hope they’re not using Monopoly money! 🤑

With a strong balance sheet, GameStop has room to boost its Bitcoin holdings. They ended the last quarter with over $4.7 billion in cash and no debt. That’s right, folks, they’re richer than a kid in a candy store! 🍬

However, their Bitcoin holdings only make up 3.76% of their market cap, while Michael Saylor’s Strategy is sitting pretty at 58%. Maybe they should take some notes! 📚

GME Stock Price Analysis

The daily chart shows that GME’s share price has retreated since it started its Bitcoin strategy. It dropped from $35 in May to $29.58. It’s like watching a sad puppy trying to climb a staircase! 🐶

But don’t worry, the stock is still above the 50-day and 100-day moving averages, which is a good sign. It’s like finding a dollar in your old jeans! 💵

As we await the first quarter fiscal 2025 results, set to drop after the market closes on Tuesday, June 10, the outlook is neutral. The key levels to watch are the psychological point at $20 and the resistance point at $35.78. Let’s hope they don’t hit rock bottom! 🤞

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2025-06-08 19:45