GameStop Corp (GME)
GameStop Corp. The company is headquartered in Grapevine, Texas.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is decreasing.
- The decline rate of the primary trend is 36.10% per annum.
- GME price at the close of April 28, 2025 was $27.59 and was higher than the top border of the primary price channel by $15.72 (132.34%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 66.61% per annum.
- GME price at the close of April 28, 2025 was inside the secondary price channel.
- The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.
Linear Regression Model
Model equation:
Yi = α + β × Xi + εi
Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)
Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)
where:
i - observation number
Yi - natural logarithm of GME price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e
Primary Trend
Start date: March 1, 2021
End date: May 8, 2024
a = 4.3602
b = -0.0012
s = 0.1768
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0012) – 1
= -36.10%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.1768) – 1
= 102.83%
March 1, 2021 calculations
Top border of price channel:
Exp(Y210)
= Exp(a + b × X210 + 2 × s)
= Exp(a + b × 306 + 2 × s)
= Exp(4.3602 + -0.0012 × 306 + 2 × 0.1768)
= Exp(4.3383)
= $76.58
Bottom border of price channel:
Exp(Y210)
= Exp(a + b × X210 – 2 × s)
= Exp(a + b × 306 – 2 × s)
= Exp(4.3602 + -0.0012 × 306 – 2 × 0.1768)
= Exp(3.6312)
= $37.76
May 8, 2024 calculations
Top border of price channel:
Exp(Y1,013)
= Exp(a + b × X1,013 + 2 × s)
= Exp(a + b × 1,470 + 2 × s)
= Exp(4.3602 + -0.0012 × 1,470 + 2 × 0.1768)
= Exp(2.9100)
= $18.36
Bottom border of price channel:
Exp(Y1,013)
= Exp(a + b × X1,013 – 2 × s)
= Exp(a + b × 1,470 – 2 × s)
= Exp(4.3602 + -0.0012 × 1,470 – 2 × 0.1768)
= Exp(2.2029)
= $9.05
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 36.10% per annum.
- GME price at the close of April 28, 2025 was $27.59 and was higher than the top border of the primary price channel by $15.72 (132.34%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: September 21, 2023
End date: April 28, 2025
a = 0.8450
b = 0.0014
s = 0.2062
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0014) – 1
= 66.61%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.2062) – 1
= 128.13%
September 21, 2023 calculations
Top border of price channel:
Exp(Y855)
= Exp(a + b × X855 + 2 × s)
= Exp(a + b × 1,240 + 2 × s)
= Exp(0.8450 + 0.0014 × 1,240 + 2 × 0.2062)
= Exp(2.9917)
= $19.92
Bottom border of price channel:
Exp(Y855)
= Exp(a + b × X855 – 2 × s)
= Exp(a + b × 1,240 – 2 × s)
= Exp(0.8450 + 0.0014 × 1,240 – 2 × 0.2062)
= Exp(2.1669)
= $8.73
April 28, 2025 calculations
Top border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,825 + 2 × s)
= Exp(0.8450 + 0.0014 × 1,825 + 2 × 0.2062)
= Exp(3.8099)
= $45.15
Bottom border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,825 – 2 × s)
= Exp(0.8450 + 0.0014 × 1,825 – 2 × 0.2062)
= Exp(2.9852)
= $19.79
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 66.61% per annum.
- GME price at the close of April 28, 2025 was inside the secondary price channel.