The GME stock price held steady this week, soaring to the highest level since October 2025. GameStop jumped to a high of $24.95, up by 25% from its lowest level this month, as investors cheered key events.
Why GME Stock Price Soared This Month
GameStop shares have bounced back in the past few weeks as investors cheered several major events. First, the company’s board introduced a new incentive deal for Ryan Cohen, the Chief Executive Officer (CEO). Cohen will receive billions of dollars if the company’s market capitalization jumps to $100 billion and if its EBITDA crosses the $10 billion mark.
Second, the company announced that it was continuing to shutter stores, a move aimed at closing the most unprofitable locations. The management hopes that it will be a leaner company in the near term.
Third, and most importantly, Cohen announced that he acquired 1 million shares, bringing his ownership to nearly 10%. The acquisition is a sign that he strongly believes that the company will continue doing well.
Additionally, Michael Burry, a popular investor who predicted the Global Financial Crisis, announced that he was bullish on the company. This is notable as Burry was also bullish on the company before the 2021 surge.
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GameStop’s business has come under pressure in the past few years as its business has been disrupted, a situation that will continue in the long term. People are no longer buying games and consoles in stores as they did in the past, with many of them opting for online purchases.
At the same time, its pivot into NFTs and collectibles has not worked out well, with the company being forced to close the business. Its pivot to Bitcoin accumulation has not worked as demand for Digital Asset Treasury companies has waned, with the MSTR stock price crashing by over 70% from its peak.
The only good thing about GameStop is that it has a strong balance sheet with over $7 billion in cash and little debt. Also, the company still makes some profits, meaning that it is not burning cash. Its balance sheet means that the company has room to maneuver its operations.
Additionally, as we saw in early 2021, its short interest has jumped in the past few months, meaning that it is a good candidate for a short squeeze.
GameStop Stock Price Technical Analysis
The daily timeframe chart shows that the GameStop stock price has rebounded in the past few weeks, moving from a low of $20 to the current $24. Its rebound happened after it formed a double-bottom pattern and a neckline at $24. A double-bottom is one of the most common bullish reversal signs in technical analysis.
The stock has jumped above the 50-day Exponential Moving Average (EMA) and the 23.6% Fibonacci Retracement level at $23.5. Moving above that level is a sign that bulls have prevailed.
The stock’s Relative Strength Index (RSI) and the MACD indicators have continued rising this month. Therefore, the most likely scenario is where it continues rising as bulls target the next key resistance level at $27, the 50% Fibonacci Retracement level.
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