GameStop Corp (NYSE: GME) has kicked off Wednesday’s trading session with an upswing of 1.11% to $162.50 at the time of writing. Shares of the Grapevine, Texas-based company managed to weather the equity market downfall on Tuesday and are on course to set yet a second higher low – marking an uptrend. The poster child of Reddit stocks is benefiting from a substantial business development – moving toward eCommerce – described below.
NYSE:GME has definitely lots much of its steam from earlier this year as the daily average trading volume continues to be a fraction of what it once was. The king of the meme stocks has been trending downwards and has hit a strong resistance at $200 every time the stock comes close to those price levels. On Tuesday, amidst one of the worst trading days for the NASDAQ in months, GameStop fell by 0.91% and closed the session at $160.73. GME is now trading well below its 50-day moving average as its chart continues to see a bearish trajectory.
One bright spot for shareholders came when GameStop announced that it was opening a 700,000 square foot fulfillment center in York, Pennsylvania. GameStop is trying to build up its delivery service on the east coast and is hoping to have the fulfillment center operational by the fourth quarter of this year. New interim Chairman Ryan Cohen has been very vocal about transforming GameStop into an eCommerce platform that can be the ‘Amazon of gaming’, and this location is the first big step towards realizing Cohen’s vision.
GME stock dividend
GameStop has also taken steps to clear its balance sheet of long-term debts, as it recently completed a voluntary redemption of over $216 million in senior notes. If the company is as serious about its evolution as Cohen says they are, this will go a long way in helping to fund the transformation. GameStop should provide an update to shareholders at its quarterly earnings call scheduled for June 8th, 2021.