Video-game retailer GameStop (NYSE:GME) just made some significant changes. Notably, the company brought a new chief financial officer (CFO) on board, and also opened up a non-fungible token (NFT) marketplace. Meanwhile, the sudden resurgence of the meme-stock trade might have pushed GME stock too far, too fast. So, it’s wise to wait for a share-price retracement before jumping into the trade.

Thought the meme trade was over? Think again, as former short-squeeze targets are apparently ripe for another epic rally. Among them is GameStop, the original-recipe meme dream that put Reddit on the map.

Or, did GameStop put Reddit on the map? Either way, it’s tempting to get caught up in the hype after a classic meme stock just catapulted higher.

Yet, it’s important to be patient, pick your buy price and wait for it. After all, GameStop’s making big changes and it’s too early to tell how they’ll pan out.

What’s Happening with GME Stock?

It’s not quite as dramatic as what happened last year. Still, GME doubled from around $20 on May 11 to nearly $40 in August, and that’s an impressive rally in its own right.

The enthusiasm for meme stocks isn’t quite as powerful as it was in 2021, though.

This may be because some traders got caught up in the hype and bought GameStop shares near the top. Then they probably got burned when the stock lost much of its value.

Hence, today’s GME stock traders need to stay calm and be realistic. Don’t expect an exact repeat of 2021. Those days are gone, and you have to trade based on what you’re seeing today, not on nostalgia over last year’s opportunities.

Wait Before Entering the Trade with GameStop

Currently, GameStop is in a transitional phase. For one thing, the company enacted a four-for-one share split not long ago. Second, GameStop recently welcomed a new CFO, Diana Saadeh-Jajeh.

Moreover, the company is gearing up for a quarterly earnings report in September. That event, by itself, could cause GME stock to drop.

In addition, GameStop opened an NFT marketplace. This marketplace “enables parties to truly own their digital assets, which are represented and secured on the blockchain,” according to the company. Only time will tell whether GameStop can leverage its NFT marketplace into a strong revenue generator.

For the time being, Ihor Dusaniwsky, managing director at S3 Partners, is striking a cautious tone on the recent price surge of meme stocks. “There doesn’t seem to be much fundamental reason for the activity,” Dusaniwsky declared.

Similarly, Monica DiCenso, managing director and head of the Global Investment Opportunities Group at JP Morgan Private Bank, sounds baffled by the sudden interest in GME stock and other meme stocks.

“Fundamentally, I struggle with some of these names to say why they should be up that much,” she said.

What You Can Do Now

Clearly, not everyone’s on board with 2022’s short-squeeze renaissance. If you’re concerned that GameStop’s going through numerous changes now, that’s understandable.

You might also be worried that GME stock simply went too far, too quickly and is due for a retracement. These are valid concerns.

Thus, it’s sensible to wait patiently until the GameStop share price pulls back. Then, if you’re ready to join the meme-stock revolution, you can buy a few shares and hope for the best.

On the date of publication, David Moadel did not have (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 InvestorPlace.com Publishing Guidelines.