GameStop Corp (NYSE: GME) shares are trading higher Monday morning, continuing a strong rally that has seen the stock gain nearly 20% over the past month. The broader video game sector is seeing strength Monday after Electronic Arts announced it is being acquired in a $55 billion all-cash deal.
This massive investment in the industry is lifting related stocks, including GameStop, as it could signal strong investor confidence in the future of gaming entertainment.
What’s Driving Shares: Recent momentum is fueled by the video game retailer’s second-quarter earnings report earlier this month, which surpassed Wall Street expectations. GameStop posted earnings of 25 cents per share on $972.2 million in revenue, beating consensus estimates that projected 16 cents per share and $823.24 million in revenue.
Furthering the bullish sentiment is the company’s declaration of a special dividend of tradable warrants. For every ten shares held, shareholders of record as of Oct. 3 will receive one warrant, allowing shareholders to purchase a share of GameStop at an exercise price of $32. The move could potentially raise up to $1.9 billion for corporate purposes and potential acquisitions.
Read Also: Leading Game Maker EA Gets Acquired In Largest All-Cash Take-Private Deal
Benzinga Edge Rankings: Underpinning the company’s positive outlook, Benzinga Edge rankings award GameStop an almost-perfect Growth score of 99.15.
How To Buy GME Stock
By now you’re likely curious about how to participate in the market for GameStop – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
If you’re looking to bet against a company, the process is more complex. You’ll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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