
The meme stock mania reared its head again last month following a tweet from the Roaring Kitty account on X. As a result, shares of GameStop (GME) have more than doubled in the past month, valuing the company at a market cap of $9.7 billion today.
While retail traders may yet once again drive GME shares to all-time highs, it's essential to note that the gaming retailer is a high-risk buy due to its weak fundamentals. For instance, GameStop forecasts fiscal Q1 of 2025 sales to range between $872 million and $892 million, lower than $1.23 billion in the year-ago period. It remains unprofitable and expects to report a net loss of $32 million (at its midpoint forecast) in fiscal Q1.