GME Stock Price Predictions: Where Will GameStop Go After Meme Stocks Crash?

After a historic 2021 that saw meme stocks soar to atmospheric levels, 2022 is sending them plummeting back to Earth. Take r/WallStreetBets darling GameStop (NYSE:GME), for example. GME stock is down more than 30% since the year began. AMC Entertainment (NYSE:AMC) is down over 30% year to date as well. Is this the end of meme stocks?

Retailers walk past a GameStop (GME stock) store in New York City, New York.
Source: Northfoto /

A recent report by the Wall Street Journal details how the once-vibrant community of r/WallStreetBets has been “largely abandoned.” In 2021, the S&P 500 soared to all-time highs, attracting many new traders and investors to the stock market. A rising tide lifts all boats, and GME stock was no exception. However, the S&P 500 is down more than 9% since 2022 kicked off. The WSJ adds that:

“If the meme revolution made trading cool, it also made it harder to separate the next big stock sensation from the next big money loser.”

On top of that, a hawkish Federal Reserve in the midst of raising rates does not bode well for speculative meme stocks. The Fed will begin its two-day Federal Open Market Committee (FOMC) meeting today, which should set the tone on its monetary policy plan moving forward.

So far, it looks like 2022 won’t be a repeat of 2021 for GME stock. However, let’s see how the experts on Wall Street feel about GameStop.

GME Stock Price Predictions

  • Wedbush has a $45 price target. Analyst Michael Pachter believes that the share price is disconnected from its fundamental valuation due to last year’s short squeeze. Pachter adds that even though he believes GameStop will return to profitability this year, he still expects top-line growth to be flat.
  • Ascendiant Capital has a $23 price target. Analyst Edward Woo believes GameStop’s current market capitalization is supported by speculative retail traders instead of “fundamental valuations or metrics.” Woo points out that despite strong video game industry sales in 2021, GameStop’s software sales were nearly flat.
  • Although Bank of America has stopped covering GameStop, its last price target was $10. Analyst Curtis Nagle noted at the time that GameStop is a still a long way from executing its turnaround. Nagle argued that any progress on the a turnaround strategy is already priced into GME. The analyst also noted that GameStop’s “core gaming business is extremely challenged and losing share at a highly concerning rate.”
  • Finally, GameStop has an average price target of $34 among 4 firms with coverage of the stock.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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