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GameStop (GME) Stock Dips Despite Nintendo Switch 2 Preorder Buzz: What's Going On?

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GameStop GME Stock Dips Despite Nintendo Switch 2 Preorder Buzz: What's Going On?

GameStop Corp (NYSE:GME) is down 2.4% to $25.95 on Tuesday, extending its year-to-date decline to 15.3%, despite recent buzz surrounding the Nintendo Switch 2 console launch.

What To Know: On April 24, GameStop saw a brief uptick in investor interest as it became the last major U.S. retailer to open pre-orders for the highly anticipated device.

While retailers such as Target, Best Buy and Walmart quickly sold out, GameStop launched its own online and in-store pre-orders at 11 a.m. ET on that Thursday, offering gamers another chance to secure the console, which retails for $449.99 or $499.99 with a Mario Kart bundle.

GameStop also introduced up to $175 in trade-in credit for older Switch models and plans to open all stores at midnight on June 5 for launch-day pickups. Despite this strategic positioning, the excitement hasn't translated into sustained gains for the stock since pre-orders began.

Nintendo ADR (OTC:NTDOY), by contrast, has seen its shares hit all-time highs amid explosive demand, with over 2.2 million Switch 2 applications recently reported in Japan alone.

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How To Buy GME Stock

By now you're likely curious about how to participate in the market for GameStop — be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of GameStop, which is trading at $26.11 as of publishing time, $100 would buy you 3.83 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading — either way, it allows you to profit off of the share price decline.

According to data from Benzinga Pro, GME has a 52-week high of $64.83 and a 52-week low of $14.93.

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