"Meme Stock" game station announces entry into NFT market, but analysts aren't impressed
As part of its transformation, prominent Meme stock GameStop (NYSE:GME) announced that it will enter the NFT market in the second quarter of fiscal 2022, a move that has generated a lot of buzz in the market.
Back in February, GameStop announced a partnership with an Australian blockchain startup called ImmutableX to provide funding for NFT content creators.
In his latest report, Wedbush analyst Michael Pachter expressed concerns about GameStop's entry into the NFT market.
The analyst noted that GameStop may have limited success in entering the NFT market. He said obstacles to GameStop's success include a lack of established partnerships with console game makers such as Sony and Nintendo, and GameStop's own very limited customer base of console gamers.
Michael Pachter lowered his price target on GameStop from $45 to $30, maintaining his Outperform rating.
Shares of GameStop were once trading at $480 during the retail boom of 2021, but as the boom waned, GameStop shares have retreated and are now trading at $90.