GameStop (GME) Stock Price Boosted by 'Stimmies', But This is Ending - BofA

March 19, 2021 7:20 AM EDT
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Price: $158.53 -3.55%

Rating Summary:
    3 Buy, 11 Hold, 8 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 7 | Down: 16 | New: 68
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BofA Securities analyst Curtis Nagle, in collaboration with BofA's predicative analytics team, analyzed the impact on Reddit Wallstreetbets conservations mentioning stimulus - as well as "stimmies" and "stimmy” - against GameStop's (NYSE: GME) share price.

The team found concurrent spikes both in early 2021 and over the past two weeks. "In late December and ahead of stimulus payments, there was indeed a spike in stimulus mentions and this was followed by an even larger increase over the past two weeks (3/2/21-317/21)," they commented. "These spikes also coincided with significant increases in GME’s share price."

While stimulus payments are still being distributed, Nagle believes the impact on GME shares going forward may be limited, citing two factors:

1) conservations involving stimulus appear to have peaked and GME shares declined over the past few days; and

2) the number of recent conversations including both GME and stimulus is low.

The firm reiterated an Underperform rating and $10 price target on GME ahead of the company's fourth-quarter earnings on March 23rd. The firm said they would not be surprised to see an earnings miss.



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