The fundamental case today versus January 2021 is night and day.
In today’s edition of The Call @ Hedgeye Retail analyst Brian McGough and Hedgeye CEO Keith McCullough discuss the monster spike in shares of GameStop (GME). Trading was halted earlier today for volatility as the stock ripped over 100%.
We believe the bottom could fall out quickly on this Gamestop rally given there is no fundamental case for institutions to potentially get behind and your big bull case is already priced in.
For the record, our Retail team had Gamestop on as a Best Idea long back in December of 2020—before the stock rocketed to the moon. But the story has significantly changed since then as McGough highlights in this clip. Investors should take careful note.
“It’s hard to make sense of this, and it’s hard to put any kind of rational thinking behind it,” explained McGough. “All we can do is stick to what it’s ultimately worth, look where it’s trading, and make a call accordingly.”
Click above to hear McGough and McCullough’s take.
