Michael Kamerman, CEO of Skilling, shares his opinion on what stock you should buy this week.

Gamestop

Retail investors will be aware of Gamestop given the influence the stock had over the course of the pandemic. Once again, the stock is fast gaining attention.

In the last 12 months, the company has massively increased sales to 30% year on year. Also, with Gamestop set to enter the NFT space, its growth is likely to continue – similar to that of companies such as OpenSea.

Despite net sales rising by 6.2% to $1.88 billion, the firm reported a net loss of $147.5 million proving that Gamestop remains a high-risk bet.

Investors need to consider the combination of supply chain issues and the Omicron variant before taking bets on the stock. Gamestop is likely to take a while to rebuild, especially given the company’s loss and worldwide shift towards digital gaming solutions.

Whilst the NFT marketplace grew to $41 billion in 2021 and therefore offers strong opportunities for growth, Gamestop will ultimately have to turn profitable to gain investor confidence. 

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 89% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. 

Not investment advice. Past performance is not indicative of future results.