Wall Street sets GameStop stock 12-month price target

Core Viewpoint - GameStop's stock has experienced periods of inactivity interspersed with brief surges, with a recent resurgence linked to a Wall Street analyst's price target revision and the company's new investment strategy involving Bitcoin [1][2][5]. Group 1: Analyst Insights - Wedbush maintains a 'sell' rating on GameStop, raising the 12-month price target from $10 to$11.50, while still projecting a significant downside of 59.45% over the next 52 weeks [2][4]. - Analyst Michael Pachter suggests that GameStop is unlikely to achieve profitability in the foreseeable future, indicating that the company's operational losses make it difficult to justify a high valuation [3][4]. Group 2: Market Reaction - Despite the negative outlook from analysts, GameStop's stock surged over 12% in after-hours trading, reaching a price of $28.36, reflecting a 12.42% increase over the past week [5]. - The rally was primarily driven by GameStop's announcement to include Bitcoin in its investment strategy, capitalizing on the recent bullish trend in the cryptocurrency market [6]. Group 3: Company Strategy - GameStop's new strategy to invest in Bitcoin aligns it with MicroStrategy, which has seen significant stock price appreciation of 78.36% over the past year [7]. - This is not GameStop's first foray into digital assets, as the company previously attempted to establish a non-fungible token (NFT) marketplace, which did not achieve success [9].