Looking for something unique where you can invest? Well, a lot of us have spent quite some time indoors in the pandemic. Now, everyone is looking for new opportunities and we cannot deny the amazing news about Invest in GameStop. It is getting a lot of fame on social media and news channels. People are asking that how to invest in GameStop, so let’s talk about it.
GameStop is an American brick and mortar retailer that specialise in video games. It includes consumer electronics video games and retailer of gaming merchandise. The headquarter of this company in Grapevine, Texas. It is the largest video game worldwide. The company is advertising GameStop with physical appearance on walls of the street which are unique and modern. On the date of January 30, 2021, the company opened 4,816 stores. It includes 3,192 stores in the United States, 253 stores in Canada. The total amount of stores are 417 in Australia and New Zealand and 954 in Europe.
The company came into being in Dallas in the year of 1984 as Babbage’s, and they change its name in 1999 as GameStop. The performance of the company starts to decline in the mid late of 2010s. The reason for declining was the shift of video game sales to online shopping. The downloads and investments of GameStop were failed in the smartphones of retails.
In 2021, the price of company’s stock was rise again due to a short squeeze by users of the Internet forum and Wall Streeters. The company achieve significant attention of media during January and in February 2021. It was all due to the volatility of its stock price and the Invest in GameStop. In addition to the retail stores, GameStop owns and publishes Game Informer which is a video game magazine. And in Australia runs Zing Marketplace, which is an e-commerce retro gaming and pop culture marketplace.
- 1 How to invest in GameStop stock
- 2 How to place an order?
- 3 What is GameStop? And should I invest?
- 4 How has the company performed in recent years?
- 5 Where to Invest in GameStop and Choose a Broker
- 5.1 Security and Privacy
- 5.2 Fees and Features
- 5.3 Privacy & security
- 5.4 Security and Privacy
- 5.5 Fees and Features
- 5.6 Cons
- 6 Different Ways To Invest In GameStop?
How to invest in GameStop stock
If you’re new to investing in this field, this is the perfect guide for you. Following are the steps in order to start your journey on the stock market:
Choose a broker.
The very first thing you need to find is an online broker platform. There are a lot of different options to select from, each with their own distinctive advantages and disadvantages.
Create an account.
When you select your broker, you simply go to their website and create a new account. The steps required making of account will vary from platform to platform, but generally you can expect to ask some major questions. They can ask you to provide your name, email address, phone number, and some sort of photo identification.
When your account is done, log in to your broker account and select the option to put down funds. Depending on your broker you will have a variety of payment options available for you. Most brokers accept only bank transfers and debit card payments, but not all banks accept e-wallets such as PayPal. Select your preferred payment method and deposit the amount of your money you wish to invest in GameStop shares.
How to place an order?
For Place an order for GME stock, you can search for GameStop ticker symbol (GME). And then see the price of the current rate at which the stock is trading. If you are happy with the price and want to buy, enter the number of shares you wish to get and place your order.
Execute your order
Once you have placed your complete order, your broker will execute it automatically. And the shares of GameStop will get into your account. Congratulations, you have just bought shares in GameStop. This message will appear on your screen after you own your shares.
What is GameStop? And should I invest?
Whether you should invest in GameStop or not depends on the possibility of elements both in the short and long term. A gush of interest in the stock sent the GME share price starts increasing in January of 2021. And the world has been left marveling if this affecting performance can continue. Even if the price were to level out again, the attention this has given to GameStop’s brand could be a reason for its long-term prospects in the future.
Shares of GameStop were going to 5.6% higher heading into noontime trading Monday despite the announcement. The video game retailer’s chief operating officer (COO) had quit just seven months after taking the job.
The brand had to close almost 450 locations in 2020 after a poor performance during the pandemic. But now it is not quite so clear what the business’s long-term prospects are likely to be.
How has the company performed in recent years?
GameStop became a household name in 2021 to start with their recent comeback. It is all after the subreddit r/WallStreetBets encouraged retail investors to buy shares in the company. At the start of 2021, GME shares traded at just below $20, by January 27th they were above $350 a share.
This move became an inspiration for hedge funds adopting ‘short’ positions on GME stock. And independent retail investors pile money into the shares to take on the finance pros. The huge price start increasing and the results were Melvin Capital hedge fund losing billions of dollars.
GameStop investors have now come back avoiding the news and they are investing in the company. The old news is now just a report that investors read before they pitch in their money. So, there is a big chance of a successful future when it comes to this company.
Before this huge spike, Invest in GameStop was performing relatively poorly. By noticing this shorting activity, a notable number of WallStreetBets members invent a plan to buy and hold GameStop stocks. It was a way to drive the stock price higher and trigger what is known as a short squeeze. It was an effective plan so the hedge funds would buy their stocks at much higher prices. At this point, the frenzy was only beginning by January 20, GameStop’s price was almost $40 per share. It was doubling its price in only three weeks. Five days later, it got to $76. And on the morning of the 28th, it skyrocketed to a staggering peak of $483.
Lifeline in August 2020
There was a lifeline review in August 2020 when activist investor Ryan Cohen bought a 13% stake in the company. He began to push GameStop towards the online space, with ambitious plans to compete with Amazon. Not only that he became the part of company’s board in January 2021. This led to GME’s share price rise, leading to a financial battle between the hedge funds and WallStreetBets. The prices were increasing at a steady rate and a lot of people wanted to buy shares.
What goes up must come down, as the old saying goes. And the same was true for GameStop. Over the following week, the stock got down, trading at a little over $50 per share just a week after reaching that all-time stratospheric high. Part of the speedy decline attributes to the unsustainable bullish sentiment that was the overall plan of WallStreetBets. They pushed the members to hold strong but many were selling their positions behind closed doors.
The decision by the popular trading app Robinhood was to restrict the purchase of GameStop shares through its platform on the 28th. It was when the stock price was still considerably elevated also contributed heavily to a decline.
A brokerage that was marketing as being accessible to small retail investors and promoting investing was all of a sudden suspending its service to those very investors at the most crucial time. Naturally, this led to widespread accusations that it was protecting the wealthy billionaire hedge-fund managers of the Goliaths at the expense of the Davids.
High price in 2020
According to some internet traders, the accusations were not true. The group WallStreetBets, has a thriving membership on the popular social-media discussion forum site Reddit. They were especially buoyant about GameStop’s fortunes, which helped push its share price higher during the final quarter of 2020. By the end of the year, the company’s stock was trading at almost $20. This recovery attracted the attention of Wall Street, including the eyes of many sizeable hedge funds. Their analysis, however, deemed GameStop to be overvalued, and they began shorting its stock. In other words, they borrowed the stock to sell it with the view that its price would fall. At which point they would buy the stock and lock in healthy profits.
One way GameStop can differentiate itself is to have a robust catalog of titles. So gamers can purchase multiple titles with ease, particularly when seeking used games. Instead of waiting for other gamers to list used games on eBay, customers could go to a one-stop shop with confidence.
The order to delivery times could fulfill the network by investing with the market. In Reno and Nevada, GameStop hires out a 530,000 square foot in fulfillment of facility. In the West Coast region, the move will improve the shipping time. Amazon has conditioned its customers to expect quick and free shipping and consumers are very fast to change where they shop based on rapid delivery.
Moreover, Invest in GameStop is trying to improve its customer service by opening a customer care center. Moreover, they are also increasing their Florida staff. In addition, they are hiring employees with experience in e-commerce, user experience, supply chain, user interface, and operations.
While they are investing in these projects, it’s also cloaking its lowest-performing stores. In 2018, they sold about 83% of video games in digital form, according to Statistic. It was without signaling the lack of demand for stores to carry physical inventory. During the pandemic, the trends were changing and in 2020, the revenue of 91% of the game industry was digital. Hopefully, the right proportion could bring the footprints of the company closer to profit.
Where to Invest in GameStop and Choose a Broker
In today’s world, there are a lot of options available for you when it comes to choosing a broker online. It can be a bit difficult to narrow down and choose the best option. Because with the rise of online trading platforms all of the stockholders are offering great features. It is becoming important for everyone to research and get knowledge and then compare them with other brokers. To make sure that you make the best decision, we have researched the brokers. We made sure that our depth analysis will help you pick a broker for Gamestop easily.
Let’s talk about each one of them in detail below.
eToro — Best Option for Gamestop and other trading platforms investors
Since 2007, it is continuing to grow big to bigger making it the top choice for Gmamestop on our list. The users of eToro boast up to over 17 million and growing. It has emerged as the go-to option for trading among both beginners and experienced traders. It offers a variety of features that make it innovative and a full-rounder when it comes to packages. You can get your very own custom package as well.
Security and Privacy
It is understandable to have your consciousness and responsibility for security when you are pursuing an online platform. Especially in a case where you are dealing with your money. We recommend you do whatever needs to be done for your surety about the security of the platform. You must do all kinds of research before you operate or start making any transactions. eToro is under regulation by FCA & CySEC which means both your data and money are safe. They are also using the best network security systems and encrypt your data to ensure trust and safety in return. If someone tries to hack into your account, you have the back of FCA to take preventive measures.
Fees and Features
When we talk about the fees and features, don’t be fooled by the simple user interface of eToro. Because it packs plenty of all-around great features behind it. An amazing feature that you can use on this app is copy trading. It means that you can use strategies or patterns of experienced traders or learn about their decisions. If you are not much known about trading, it will still help you create a source of continuous, steady income. And with time you will be able to learn trading like a pro. Furthermore, it’s not like you have just one platform like GameStop, you have plenty of other options too.
- This platform is under the regulation of FCA and CySEC
- It is a commission-free app
- It has the feature of CopyTrading to help beginners
- It has a simple and easy-to-understand interface
- It Offers SSL encryption
- It has a feature of 2FA to protect your sensitive information in case of hacking
- It does not have MetaTrader support
- AvaTrade – Comparatively much accessible than others in our list
AvaTrade was established in 2006, which is the true master of the market in old times. We can say it is the oldest platform for such trade on our list. They keep it up to date according to the new trends of the market to stay in competition with the others. They also add advanced security systems to make transactions easy and more secure. Moreover, they cover an immense variety of markets. AvaTrade provides you with many other amazing opportunities as well. You can start by checking out their exciting offers right away.
Privacy & security
AvaTrade always provides the best of their security and also keeps aware of any new improvement they need with time. The best part is that they are using McAfee secure integration. It helps them to keep track of every single piece of information and requires identification before someone hacks it. To keep the system and personal data safe from hackers it uses 256-bit SSL encryption.
AvaTrade provides a commission-free fee structure. They only charge a steep inactivity fee and no hidden charges are involved. They have a top-notch customer support department that provides you with instant information on your call or email. For beginners, it is the best opportunity for them to start up their businesses easily in the trade market.
Professional trading account is given to experienced traders once they fulfill all the required requirements. And also have the right to use different financial instruments. AvaTrade always comes up with innovation, recently they introduced an Islamic account that follows all Islamic rules so people can easily come into trading.
- Provide professional trading account to experienced users.
- It is a fully regulated platform
- It has a commission-free fee structure
- Introduced Islamic account to make trading easy for more people
- For customers, ease provide 24/7 customer support.
- Has an inactivity fees
- Not available in all countries
Capital.com – Perfect for easy GameStop investments:
In the world of trade investment, Capital.com has its place with having access to more than 4000 markets globally. They have a competitive edge because they help traders which are new in the market. If you are a beginner, you can go through their tutorials that will be your guide. You can learn everything you need to know about the trade market here. The guidelines are by experienced leaders in the trade market which you can follow for better investments.
Security and Privacy
For top protection and security of data, Capital.com is governed by FCA and CySEC. This platform provides security to the users against their sensitive data by using best practices. To ensure that information could not be used or sold to any bidder they follow data security standards of PCI.
Fees and Features
For beginners and new traders, Capital.com is the best platform. They provide practice account to practice trading and also give important information on each kind of market. This demo account helps you before you go to the original account. On the other hand, old traders with experience can get advanced charting tools, trading view integration, and many more to check advanced movements in the market.
- Practice account for beginners
- Trading view integration for experienced ones
- Information guidance about market trends
- The limited trading option only to CFDs and stocks
- New for competitors
Different Ways To Invest In GameStop?
There are many different and unique ways to invest in GameStop. As a new investor, it can be a bit hard for you to measure the different options that are available for you, And the more important factor is to understand the differences between all of them. You can be left frequently trying to understand economic jargon and when you do arrive at a final decision, you need to see if your broker is supporting your method.
We do understand that there are a lot of technicalities and questions that can stop you from investing. To clear your mind, here are the three main ways to invest in GameStop.
One of the easiest and common ways to invest around the world is buying stocks. They are easy to understand if you know some intro about trading. Moreover, it is the best overall option for first-time investors, and they also offer long-term benefits. You can become a part of ownership when you buy a share in the GameStop. It legally becomes eligible to receive dividends intermittently. Dividends are the profits that will be distributed on an equal basis among the other investors as well. If things go well with the prices of GameStop, you can also be a part of shareholder meetings.
CFDs (Contract for Difference)
The full form of CFD is Contract for Difference. There is a different option in any company of CED. It means when you choose an option of CFD, you are not buying any shares and you will not get any ownership. The only thing you do is to speculate whether the price of shares will increase or decrease. You can only earn profits when you provide the right direction. It might be not an easy way to make big bucks but still can be profitable if you make the right decision.
ETFs (Exchange-Traded Fund)
ETFs stand for Exchange-Traded Fund which is another method to invest in a company without buying actual shares. An ETF is a fund created by a brokerage or a fund manager which allows you to invest in a bunch of different companies without buying their shares. Here, you can buy a portion of the fund that buys those shares. In this way, you will still get dividends but you will not get any voting rights.