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The GameStop stock has been under a lot of pressure following the latest financial report showing poor performance in the second quarter. In the report, GameStop sales were down, and losses widened. The company’s cash pile also shrunk as its inventory continued to swell.
FTSE100 (7265.9)
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In the quarter ending July 30th, the company recorded total sales of $1.14, which is a drop from the same period last year, when it posted $1.18 billion. The company’s losses also widened from $61.6 million (21 cents per share) to 108.7 million (36 cents per share) year-over-year. 
However, despite posting losses and its sales seeing a decline, the company has continued to diversify from its brick-and-mortar model to a more digital-focused model. This has included investment in blockchain and the NFT industry, ventures that so far have not paid off and have only increased costs of operations. 
GameStop stock may have kickstarted the “meme stock” trend, which saw it enjoy a strong bullish push in the past two years but has struggled to maintain the retail traders that helped it grow. Using the daily chart below, we can see the prices have traded in a strong bearish trend for the past month.
However, since last week, the prices have been in a bullish trend, which has weakened in the past three days. Today, the prices are up by a percentage point and trading below the $28 supply level. Despite the recent bullish push, the long-term trend still appears to be bearish, with prices trading below the Williams Alligator.
Therefore, my GameStop price prediction expects the prices to resume the bearish trend, which will see prices hitting recent lows of $23. However, should the prices continue to rise and trade above $32 price level, then my analysis will be invalidated.
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