GameStop Shares Are On The Rise Today: What's Going On?

GameStop Corp. GME shares are trading higher Thursday following a social media post by Keith Gill, known as “Roaring Kitty,” a prominent figure in the 2021 GameStop short squeeze.

What To Know: On Dec. 25, Gill shared an image of a wrapped gift on X, formerly Twitter. The post sparked speculation among retail traders, driving increased interest in GameStop shares during overnight trading. Shares rose 7.68% in after-hours trading on Robinhood, reaching $33.50 at one point.

Cryptocurrencies tied to Gill's online persona also reacted. The meme coin GmeStop (GME) rose 5%, with its market capitalization reaching $31.26 million, while Kitty Inu (KITTY) surged by 17.96%.

The movement in GameStop's stock could reflect continued volatility driven by retail trader enthusiasm rather than changes in the company's fundamentals.

Should You Buy GME?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like GameStop‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. GameStop GME does pay a dividend, which yields 10.93% per year as of the closing price on Dec. 26, 2024. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 17.75%, you'll need to buy a share of PermRock Royalty Trust by the Dec. 31, 2024. Once done, you can expect to receive a nominal payout of $0.05 on Jan. 15, 2025.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on GameStop will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

GME Price Action: GameStop shares were up 5.43% at $32.82 at the time of writing, according to Benzinga Pro.

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