GameStop (NYSE: GME) is proving the naysayers wrong and returning to growth, but investors and traders should not expect this stock to spike like it has in the past. The company is on track to issue a significant number of warrants that put a cap on the market, and that is only one reason to be wary.
The strike price will be $32, and the warrants will equal 10% of the float, which presents a significant overhang for the market. The takeaway is that GameStop may be shifting from meme-stock quality to something else, but it hasn’t completed the shift, and there are few fundamental reasons to own it.
