A 250% gain in GameStop stock within days is 'frankly stupid'

GameStop Corp (NYSE: GME) is up another 50% in premarket on Tuesday as retail investors continue to pile into shares of the video gaming merchandise retailer.

Cole Smead shares view on $GME rally

While many have pulled off exceptional returns from return of the meme stock craze, the chief executive of Smead Capital Management continues to liken it to gambling. 

He’s against participating in the $GME rally primarily because it’s not backed by fundamentals. On CNBC’s “Street Signs Europe”, Cole Smead said today:

GameStop stock is now up some 250% versus its year-to-date low. 

GameStop stock could crash to $5.0

The meme stock frenzy returned this week after “Roaring Kitty” posted on X for the first time in about three years. 

Keith Gill who is also known as DeepF******Value on Reddit is the one who inspired the massive short squeeze in GameStop stock in 2021. 

The $GME rally arrives shortly after the New York listed firm reported a 20% hit to quarterly sales. Its per-share earnings also printed at 21 cents in Q4 that missed Street estimates by a significant margin. 

More importantly, Wedbush Securities analyst Michael Pachter sees downside in GameStop corp to $5.0 per share that signals possibility of a whopping 90% decline from here as Invezz reported here.