Stock Price Trends

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 July 1, 2025 was $23.68 and was higher than the top border of the primary price channel by $12.70 (115.70%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 53.02% per annum.
  • GME price at the close of July 1, 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 = 4.2817

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(Y165)
= Exp(a + b × X165 + 2 × s)
= Exp(a + b × 242 + 2 × s)
= Exp(4.2817 + -0.0012 × 242 + 2 × 0.1768)
= Exp(4.3383)
= $76.58

Bottom border of price channel:

Exp(Y165)
= Exp(a + b × X165 – 2 × s)
= Exp(a + b × 242 – 2 × s)
= Exp(4.2817 + -0.0012 × 242 – 2 × 0.1768)
= Exp(3.6312)
= $37.76

May 8, 2024 calculations

Top border of price channel:

Exp(Y968)
= Exp(a + b × X968 + 2 × s)
= Exp(a + b × 1,406 + 2 × s)
= Exp(4.2817 + -0.0012 × 1,406 + 2 × 0.1768)
= Exp(2.9100)
= $18.36

Bottom border of price channel:

Exp(Y968)
= Exp(a + b × X968 – 2 × s)
= Exp(a + b × 1,406 – 2 × s)
= Exp(4.2817 + -0.0012 × 1,406 – 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 July 1, 2025 was $23.68 and was higher than the top border of the primary price channel by $12.70 (115.70%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: August 22, 2023
End date: July 1, 2025

a = 1.2818

b = 0.0012

s = 0.2067

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0012) – 1
= 53.02%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.2067) – 1
= 128.59%

August 22, 2023 calculations

Top border of price channel:

Exp(Y789)
= Exp(a + b × X789 + 2 × s)
= Exp(a + b × 1,146 + 2 × s)
= Exp(1.2818 + 0.0012 × 1,146 + 2 × 0.2067)
= Exp(3.0308)
= $20.71

Bottom border of price channel:

Exp(Y789)
= Exp(a + b × X789 – 2 × s)
= Exp(a + b × 1,146 – 2 × s)
= Exp(1.2818 + 0.0012 × 1,146 – 2 × 0.2067)
= Exp(2.2041)
= $9.06

July 1, 2025 calculations

Top border of price channel:

Exp(Y1,254)
= Exp(a + b × X1,254 + 2 × s)
= Exp(a + b × 1,825 + 2 × s)
= Exp(1.2818 + 0.0012 × 1,825 + 2 × 0.2067)
= Exp(3.8221)
= $45.70

Bottom border of price channel:

Exp(Y1,254)
= Exp(a + b × X1,254 – 2 × s)
= Exp(a + b × 1,825 – 2 × s)
= Exp(1.2818 + 0.0012 × 1,825 – 2 × 0.2067)
= Exp(2.9954)
= $19.99

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 53.02% per annum.
  • GME price at the close of July 1, 2025 was inside the secondary price channel.