GameStop Corp. (GME) is trading slightly higher Wednesday morning, continuing a rally that's added over 8.5% in the past five days. But before you dust off your diamond hands emoji, understand this: there's no material news driving the move. It's pure social media nostalgia.
What's Happening: The catalyst? "Big Short" investor Michael Burry recently shared 2019 email correspondence with Keith Gill, better known as "Roaring Kitty." The emails show Gill enthusiastically agreeing with Burry's buyback thesis at the time, calling the stock "absurdly" undervalued. It's a fascinating historical artifact that's managed to reignite retail interest, even though GameStop is operating in a completely different reality today than it was five years ago.
Here's the sobering context: even with this recent bounce, GameStop remains down roughly 24% year-to-date in 2025. That structural decline has left major hedge funds including Renaissance Technologies and Citadel Advisors nursing significant paper losses on their positions. Turns out betting on GameStop cuts both ways.
The real test comes next week. GameStop reports third-quarter earnings on December 9, where analysts are forecasting earnings per share of 18 cents on $987 million in revenue. Traders are watching to see whether the company's actual financials can support the renewed enthusiasm. Adding another variable to the mix, the Federal Reserve is widely expected to announce a rate cut on December 10, just one day after GameStop's report.
The Disconnect: Market data highlights the tension between sentiment and reality. GameStop earns a massive 99.36 growth score from analytical rankings, yet the stock shows negative price trends across short, medium, and long-term timeframes. That's quite the contradiction.
Price Action: GameStop shares were trading up 0.6% at $22.96 at the time of publication Wednesday, according to market data.
