You have to give GameStop (NYSE:GME) credit for sheer chutzpah. Really, you do. It’s done some things that seem downright insane in retrospect, and yet, it’s always come back to try again. One of its latest efforts found it tied up with non-fungible tokens (NFTs), and now, that move has passed. Investors were all in favor of such a move and sent shares up over 2% in the closing minutes of Thursday’s trading.
GameStop announced the plan to depart the NFT market on its NFT website. A combination of rising uncertainty in the crypto space and the potential wrath of regulators to come made GameStop reconsider its position. Customers will no longer be able to use the website to buy, sell, or create NFTs starting February 2. However, the NFTs that already exist will still be usable through other platforms, reports noted.
This news comes just two days after GameStop saw the biggest daily decline it had seen in a month take place, with shares down just over 12%. Additionally, reports from Kotaku note that it was also “regulatory uncertainty” that led to GameStop shuttering its crypto wallet platforms back in August 2023.
What is the Fair Value of GameStop Stock?
Turning to Wall Street, Wedbush Securities’ Michael Pachter remains the only analyst covering GME stock, and his Sell rating remains in place. After a 24.4% loss in its share price over the past year, the average GME price target of $6 per share implies 58.12% downside risk.
