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 36.28% per annum.
- GME price at the close of December 2, 2024 was $27.27 and was higher than the top border of the primary price channel by $13.18 (93.48%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 85.84% per annum.
- GME price at the close of December 2, 2024 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 3, 2021
End date: May 8, 2024
a = 4.5511
b = -0.0012
s = 0.1745
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0012) – 1
= -36.28%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.1745) – 1
= 100.99%
March 3, 2021 calculations
Top border of price channel:
Exp(Y313)
= Exp(a + b × X313 + 2 × s)
= Exp(a + b × 456 + 2 × s)
= Exp(4.5511 + -0.0012 × 456 + 2 × 0.1745)
= Exp(4.3372)
= $76.49
Bottom border of price channel:
Exp(Y313)
= Exp(a + b × X313 – 2 × s)
= Exp(a + b × 456 – 2 × s)
= Exp(4.5511 + -0.0012 × 456 – 2 × 0.1745)
= Exp(3.6391)
= $38.06
May 8, 2024 calculations
Top border of price channel:
Exp(Y1,114)
= Exp(a + b × X1,114 + 2 × s)
= Exp(a + b × 1,618 + 2 × s)
= Exp(4.5511 + -0.0012 × 1,618 + 2 × 0.1745)
= Exp(2.9026)
= $18.22
Bottom border of price channel:
Exp(Y1,114)
= Exp(a + b × X1,114 – 2 × s)
= Exp(a + b × 1,618 – 2 × s)
= Exp(4.5511 + -0.0012 × 1,618 – 2 × 0.1745)
= Exp(2.2045)
= $9.07
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 36.28% per annum.
- GME price at the close of December 2, 2024 was $27.27 and was higher than the top border of the primary price channel by $13.18 (93.48%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: October 2, 2023
End date: December 2, 2024
a = 0.1548
b = 0.0017
s = 0.2170
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0017) – 1
= 85.84%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.2170) – 1
= 138.25%
October 2, 2023 calculations
Top border of price channel:
Exp(Y963)
= Exp(a + b × X963 + 2 × s)
= Exp(a + b × 1,399 + 2 × s)
= Exp(0.1548 + 0.0017 × 1,399 + 2 × 0.2170)
= Exp(2.9642)
= $19.38
Bottom border of price channel:
Exp(Y963)
= Exp(a + b × X963 – 2 × s)
= Exp(a + b × 1,399 – 2 × s)
= Exp(0.1548 + 0.0017 × 1,399 – 2 × 0.2170)
= Exp(2.0961)
= $8.13
December 2, 2024 calculations
Top border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(0.1548 + 0.0017 × 1,826 + 2 × 0.2170)
= Exp(3.6892)
= $40.01
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(0.1548 + 0.0017 × 1,826 – 2 × 0.2170)
= Exp(2.8211)
= $16.79
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 85.84% per annum.
- GME price at the close of December 2, 2024 was inside the secondary price channel.