Gamestop Corp is a brick-and-mortar retailer based in the United States; the company is specialized in selling video games, electrical products, gaming merchandise, and other financial products.
It is trendy on social media among the youths. However, the company merely exists in the form of a physical store on Wall Street. The company was first launched in Dallas in 1984 with a different name, Babbage’s, and later it was named Gamestop in 1999.
The company is now headquartered in Grapevine, Texas, dealing in video games and other electronic products. With stores around 4816 in the world, it has maximum stores in the United States with 3192; in Canada, it has 253 stores, 417 in New Zealand and Australia, and 954 in Europe.
As of January and February 2021, the price of Gamestop’s stock skyrocketed within a couple of months. As a result, many traders invested in Gamestop’s shares. The Gamestop stocks are available online for traders and are traded on the New York Stock Exchange with the name GME stock ticker.
If you’re too interested in stock investing, here’s a detailed guide on how to buy stocks of Gamestop. So, let’s start now!
What Is Gamestop?
Gamestop is a video game, electrical products, and gaming merchandise retailer in the United States with a huge market capitalization. The company had gained popularity in recent years in the trade sector.
The company took over Electronics Boutique in 2005, worth $1.44 billion, thus expanding its business over countries like Europe, Canada, New Zealand, and Australia. After some years, in 2007, the company acquired Rhino video games, a giant video game seller in the southern-eastern United States.
It gradually opened more stores and kept expanding its business. Since its launch, the company acquired many companies and game stations. In addition, GameStop derives a significant portion of its revenue from selling not only games but also gaming consoles for Microsoft (Xbox), Nintendo (Wii), and Sony (PlayStation).
Here we have the list of video gaming stores or firms acquired by GameStop:
- EB games
- Rhino video games
- Free record shops
- Stake of Jolt online gaming and Irish browser game studio
- Spawn labs
- 49.9% stake in Mac
- Spring Mobile
- 163 RadioShack locations
- AT&T stores
How To Buy Gamestop Stock?
Buying Gamestop stock is profitable due to its increased market worth. Therefore, traders or other investors can purchase the number of shares they want. Alternatively, you can invest in Gamestop’s stock through exchange-traded funds (ETFs) or mutual funds.
Here’s a complete guide on how to buy Gamestop Stock:
Find A Reliable Broker:
Finding a trusted and authorized broker such as ABInvesting is the first step toward buying Gamestop stocks. If the broker offers good security features, traders should consider them. Not just that the broker should offer a secure platform with a commission-free trading experience and low fees structure.
Then traders should check on the exchanges that are available with the broker. As most brokers do not have access to the GameStop stock. So, traders must confirm whether the broker is regulated by the New York Stock Exchange (NYSE) or not.
The broker should also allow traders of different countries, and if they do not have that, traders can move forward to other brokers. With all this spread, commission, trading platform, and investment account information should be considered.
Open A Trading Account:
The second step after choosing an appropriate broker is account opening. The process is simple where traders have to register with personal information like name, email address, contact number, and set a password.
Traders can quickly open accounts with some online brokers, and some take two days to examine the traders’ background. Traders then open a brokerage account with the broker and can buy Gamestop stock and hold them for trading.
For trading, online investors have to deposit an initial minimum amount to start trading. The brokerage accounts need a minimum deposit of money to buy shares of the Gamestop company.
It is easy and pretty quick with online payment modes. You can transfer funds through debit and credit cards, bank wire transfers, PayPal and e-wallets.
Place An Order:
As the process of account opening, completes, traders can now buy Gamestop stocks easily. They have to enter the number of shares they want to buy, click on the buy button, and execute the buying order.
Investors have many choices for placing orders with stocks. The order type an investor chooses is generally guided by their investing style, holding period, and exit strategy. The main order types include market orders, limit orders, stop orders, sell orders or recurring orders.
Traders can even choose from different market order types from the trading platforms to be more precise about their trade. Alternatively, you can use a good investment strategy for your investment portfolio.
Our best investment advice to you is to make use of technical analysis tools and stop-limit order as it combines the features of a stop and limit order, allowing you to automatically buy or sell stocks at a specific price.
Monitor The Performance:
The final step is to monitor the shares regularly. Purchasing of shares requires holding them to further buy or sell in the financial market. For this, traders have to keep an eye on the market and Gamestop stock’s financial performance.
Moreover, the company details and the related news of the country also affect the Gamestop stock price. So, all these elements have to be considered while trading in the shares of a company. Look out for Company’s PEG ratio.
In fact, there are several trading strategies available with brokers that could be used for this purpose. They act as an aid for traders to analyze the market and monitor them from time to time. Traders also get the opportunity to attend annual meetings of the Gamestop company if they hold the stocks for a long period of time.
Pros And Cons:
Gamestop stocks are profitable for investors due to their high value in the market. However, traders must purchase the shares and invest in taking advantage of the market volatility. Here are some benefits that traders enjoy by trading in the Gemstop stocks:
High Returns: As considered the past performance and current market standing of the company, Gamestop can be a great company to invest in.
Hassle-free: Traders can easily buy and sell the shares of the company in the market. Therefore, it is hassle-free trade, where traders, when they feel the value will rise, they can hold, and when they feel it will decline they can sell in the market.
Liquidity: The shares are highly liquid because of the market availability at any time. Investors of the shares can sell them whenever they want through an exchange.
Inflation: Stock investments are safeguarded against inflation. Traders can secure their future needs by investing in the company’s share.
Regulated and Transparent: The trading in the stock market is regulated by the rules of the market, and exchanges follow them thoroughly. The rules and regulations of the market maintain transparency with the traders.
Dividend: Traders can enjoy the dividend of the company, thus a source of income.
Ownership: Companies provide traders with a stake in the firm; thus, they can attend meetings and be a part of the firm.
With profits comes the risk, and here are some drawbacks of investing in Gamestop stock:
Volatility: The uncertainty of the market is the biggest drawback of the stock market or any other financial market. Trading in the market is full of risk as to the price movements, and changes in the market are quite erratic.
Risks: The outsourcing factors and market changes make it risky for investors to invest in the shares.
Gamestop is a big video game and electronic gadget company in the United States. Recently, in 2021 the company skyrocketed with a high increase in its share price. They trade in shares and also bet as a hedge against the risk of the market.
So, trading with the firm is beneficial as they have good share value in the market. Therefore, it would be profitable for investors to invest in the Gamestop company.
However, new investors should always do their own due diligence to determine if the stock meets their potential investment goals. In addition, keep a watchful eye for news of GameStop’s next move. For example, their move into online commerce and NFTs could help the company reconnect with their customers
That’s all! if you’re searching for a good trading platform to buy Gamestop stocks, there is no better place than ABInvesting to start with.