{"id":17683,"date":"2025-12-10T18:12:10","date_gmt":"2025-12-10T18:12:10","guid":{"rendered":"https:\/\/bitunikey.com\/news\/gme-stock-forms-risky-pattern-as-it-face-a-double-whammy\/"},"modified":"2025-12-10T18:12:28","modified_gmt":"2025-12-10T18:12:28","slug":"gme-stock-forms-risky-pattern-as-it-face-a-double-whammy","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/gme-stock-forms-risky-pattern-as-it-face-a-double-whammy\/","title":{"rendered":"GME stock forms risky pattern as it face a double whammy"},"content":{"rendered":"<div class=\"post-detail__content blocks\">\n<p>The GME stock price retreated by over 5% on Wednesday, reaching its lowest level since Nov. 26 as GameStop faced a double whammy of weak sales and the ongoing woes in the Bitcoin treasury industry.<\/p>\n<div id=\"cn-block-summary-block_969656618cde8b57f9fe91b5c02b1bf1\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>The GME share price pulled back after publishing its earnings.<\/li>\n<li>GameStop is facing a double whammy of slow growth and ongoing challenges among Bitcoin treasury companies.<\/li>\n<li>The weekly chart shows that the stock has formed a head-and-shoulders pattern.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>GameStop stock dropped to $21.5, down by over 37% from its highest level this year, bringing its market capitalization from $15 billion to $10 billion. <\/p>\n<h2 class=\"wp-block-heading\">GameStop published mixed financial results\u00a0<\/h2>\n<p>The GME share price dropped sharply after the company published weak quarterly results that raised doubts about its strategy\u00a0\u00a0<\/p>\n<p>Its <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/investor.gamestop.com\/news-releases\/news-details\/2025\/GameStop-Discloses-Third-Quarter-2025-Results\/default.aspx\" target=\"_blank\" rel=\"nofollow\">revenue dropped<\/a> to $821 million in the third quarter, down from the $860 million it made in the same period last year.<\/p>\n<p>The decline happened primarily because of the changing American consumer in the gaming industry, with most people opting to game streaming and subscription.<\/p>\n<p>At the same time, the company\u2019s pivot to digital sales and collectibles is not working as fast as the management expected, with more consumers opting for companies like Amazon and eBay.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<p>GameStop\u2019s Bitcoin (BTC) accumulation strategy is also not working as the management expected. The value of its Bitcoin holdings ended the quarter at $534 million, a figure that has now tumbled to $434 million. Demand for Bitcoin treasury companies has tumbled in the past few months, with most of them, including Strategy and MetaPlanet, being in the red.<\/p>\n<p>On the positive side, the company\u2019s profitability rose, with the net income rising to $77 million from $17.4 million a year earlier. This profitability increased as the company reduced costs, with selling, general, and administrative expenses falling to $221 million from $282 million.<\/p>\n<p>The other positive is that GameStop maintains one of the best balance sheets in the retail industry, with its cash and equivalents rising to $8.8 billion, its current assets rising to $9.6 billion, and its current liabilities falling to $932 million.<\/p>\n<h2 class=\"wp-block-heading\">GME stock price technical analysis\u00a0<\/h2>\n<figure class=\"wp-block-image size-full\"><figcaption class=\"wp-element-caption\">GameStop stock chart | Source: TradingView\u00a0<\/figcaption><\/figure>\n<p>The weekly timeframe chart shows that the GME share price has come under pressure in the past few months, moving from the year-to-date high of $35.87 to $22.10.<\/p>\n<p>A closer look shows that the stock has formed a head-and-shoulders pattern, with the head at $35.80 and the right shoulder at $29. It is one of the most common bearish reversal patterns in technical analysis.<\/p>\n<p>GameStop stock is now hovering near that neckline at $20.55. It also remains below most trend indicators, such as moving averages and the Ichimoku cloud.<\/p>\n<p>Therefore, the stock will likely continue falling as sellers target the psychological level at $20.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The GME stock price retreated by over 5% on Wednesday, reaching its lowest level since Nov. 26 as GameStop faced a double whammy of weak sales and the ongoing woes&hellip;<\/p>\n","protected":false},"author":1,"featured_media":2443,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-17683","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/17683","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=17683"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/17683\/revisions"}],"predecessor-version":[{"id":17684,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/17683\/revisions\/17684"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/2443"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=17683"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=17683"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=17683"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}