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GameStop Stock Pops With Bitcoin Now Part of Its Investment Policy

1. GameStop added Bitcoin to its corporate investment strategy, boosting shares by 14%. 2. The retailer reported declining revenue but improved profit during cost-cutting efforts. 3. Wedbush analysts raised their price target to $11.50 but remain bearish overall. 4. GameStop's shares have risen nearly 90% over the past year despite ongoing challenges. 5. Analysts note GameStop's operations contain some value, but valuation remains questionable.

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FAQ

Why Neutral?

While Bitcoin investment may attract interest, declining revenue suggests instability. Historical examples show companies with high volatility in assets like Bitcoin often face significant price fluctuations.

How important is it?

GameStop's shift to cryptocurrency investment is noteworthy, affecting immediate trading sentiments. However, the analysts' cautious tone tempers the overall impact, suggesting that excitement may be short-lived.

Why Short Term?

The immediate excitement around Bitcoin may lead to short gains; however, long-term fundamentals remain weak. Previous cases, such as companies over-relying on trending technologies, illustrate this urgency.

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