GameStop (NYSE: GME) has experienced a decline over the past three years, although it capitalized on the meme stock craze in late 2020 and early 2021. However, in May 2024, the company’s stock saw a rapid shift as Keith Gill, also known as Roaring Kitty and DeepF*uckingValue, made a comeback with cryptic posts on social media platform X. Gill’s return, as one of the key figures in the original meme stock surge, propelled GME’s rise in the stock market. The company’s shares surged by 151% in the last 30 days and a total of 145.78% since the beginning of 2024, with the current GameStop price at $40.97.
While GME’s short-term prospects seem promising, the long-term outlook remains uncertain. To gain insights into the company’s future, Finbold analyzed the analyst consensus on GameStop and consulted OpenAI’s flagship AI platform, ChatGPT-4o.
Meme stock rallies are often social events driven by sentiment rather than fundamental business factors. Consequently, analysts predict a continued decline for GME. Notably, few recent price targets have been assigned to GameStop by Wall Street experts, and those who have provided their opinions are overwhelmingly bearish. Among the two analysts on TradingView, one rates GME shares as a “strong sell” and the other as a “sell.” Furthermore, the highest price target suggests a 33.02% decline from the latest closing price, bringing the stock down to $15.50, while the lowest target predicts a drop of 73.64% in the next 52 weeks.
On the other hand, ChatGPT demonstrated greater responsiveness to the latest developments related to GameStop. In its estimation, the AI platform considered both the likelihood of a short-term rally and the potential long-term benefits for GME. Ultimately, ChatGPT believes that $30 is a realistic price target for GameStop in the next 12 months. However, it also acknowledged the possibility, albeit unlikely, of the current surge translating into a higher price near $60, or a deeper crash to $15 in the end.
Please note that this article is not intended as investment advice, and investing carries risks.
