How to Buy GameStop (GME) Stock in Australia

American gaming and electronics retailer GameStop Corp. is a publicly listed company that operates across the United States, Canada, Australia and a number of European countries. The company’s market capitalisation is $US3.37 billion with revenue generated by both bricks-and-mortar stores and e-commerce websites that sell physical console games, gaming accessories and merchandise.

GameStop stock is listed on the New York Stock Exchange (NYSE) and is represented by the ticker symbol GME. GameStop rose to prominence in the collective consciousness in 2021 when it became the subject of a spectacular short squeeze.

A GME trading frenzy was sparked by retail investors in January 2021 that saw the stock’s value skyrocket by more than 1,500% inside a month. Ordinary investors were spurred on—primarily through social platforms including the now infamous subreddit WallStreetBets—to buy and hold GameStop shares and drive up the stock price, which had been heavily shorted by many Wall Street firms.

The social-media-driven rush to purchase GME was variously characterised as a ‘pump and dump’ scheme, and an intentional protest against the power of Wall Street hedge funds. A controversial decision by US share trading app Robinhood to restrict retail trading in GME stocks during the frenzy led to a congressional investigation in the US.

GameStop’s rise in prominence can also partly be attributed to well-known ‘investor activist’ Ryan Cohen, who’s widely admired on social media. Cohen fuelled interest in GME in the lead-up to its spectacular price surge by buying a stake in the company and publicly advocating for GameStop to transform its operations. Cohen was subsequently elected the company’s board chair in June of 2021.

Before the unusual surge in its share prices in 2021, GameStop the company was struggling. It was closing physical stores, laying off workers and losing market share to online gaming. In 2020, the company’s share price went as low as $US2.80.

Many of GameStop’s challenges have yet to be overcome but the company has signalled its intent to embrace technological change and improve its e-commerce capabilities. The company has made some promising hires with tech company know-how and is exploring emerging markets including the sale of digital collectibles (NFTs).

On a downward trend since its meteoric rise in 2021 where share prices reached over $US300, GME stock saw a few brief spikes in 2022. The company implemented a 4-for-1 stock split in July 2022—effectively lowering the price of each single share. In early 2023, the value of GME shares hovered around $US20, before halving in value over the next twelve months.

In May 2024, GameStop shares skyrocketed in value following posts on X (formerly Twitter) by influencer Roaring Kitty, who had not posted on the platform since 2021.

As The Guardian Australian reports, the posts triggered a surge in GameStop shares: they were trading on the NYSE at an increase of 110% during early trading on Monday, May 13, before quickly losing value again due to volatile trading.

By mid-week, being May 15, GameStop shares were worth $US48.75.

Related: How to Short Sell Stocks

You can buy GME by using any regulated broker or share trading platform available in Australia that provides access to US stock markets. There are three key steps to follow to buy GameStop stock:

1. Do your research

• Consider whether you need financial advice or you’re confident in your ability to manage your own trades using an online trading platform.
• Make sure you understand your reasons for investing in GameStop and check out the company’s investor info at https://investor.gamestop.com/.
• Plan out your budget and investment strategy: How much can you afford to invest? Is this a good long-term investment? Will you invest a lump sum or smaller amounts over time?

2. Open an account and place orders

• Explore and compare share trading platforms online. Many popular online trading platforms like CommSec, CMC Markets, Stake and eToro make it easy to trade US stocks.
• Prioritise platforms with low brokerage fees and foreign exchange rates.
• Open an account with your platform of choice. You may need to provide proof of your identity, connect a banking account or transfer funds before you can get started.
• Once you’re set-up, search for the GME ticker symbol and place your order based on how much you want to invest or your desired amount of shares.

3. Review GME’s performance and adjust

As a shareholder in GameStop, you essentially own a part of the company. Paying attention to how the company performs over time will help you adjust your investing strategy and whether to buy more or sell. It also helps you remain aware of opportunities to be involved in voting or receive dividends.

If you’re investing in US shares it might be worth speaking to someone qualified at tax time, as there are specific tax rules governing income dividends under the Double Tax Agreement between the US and Australia.

There’s a general sense that GME is underperforming. At the beginning of last year, 12-month price forecasts show analysts believe GME will drop in value, with an average target price of $US10.10.

But the markets have shown just how volatile and unpredictable they can be, with the share value increasing unexpectedly by up to 110% all due to posts on X from influencer Roaring Kitty. Plus, as mentioned above, GameStock returned a net income profit for the first time in Q4 of 2022.

The GameStop share price has proven to be volatile since it first started increasing on the back of social media sentiment in 2020.

Meme stocks remain in the sights of retail investors, so you can’t discount the potential of future upswings in the GameStop stock value that’s unrelated to the company’s market performance.

Perhaps a better question is whether the company can continue its efforts to become profitable through cost cutting and digital innovation in a market where physical video games are becoming obsolete? The company’s third-quarter results released in December 2022 showed a decline in sales compared to the same quarter the previous year, and a net loss of nearly $US95 million, but also a reduction in expenses and a good cash position. The following quarter, however, the company returned a net income of $US48.2 million, shocking many pundits and forecasters. The most recent results for fourth quarter showed a dip in sales on the previous year’s fourth quarter: $US1.794 billion compared to $US2.226 billion, but overall net income was $63.1 million for the fourth quarter.

The question, of course, is whether this trajectory can be sustained over successive quarters, and whether GameStop can keep finding savings, lowering expenses and outlays, in a constrained fiscal environment.  To dig a little deeper into GameStop’s recent results, and plans for the future, you can read the company’s forecasts and updates on its investor relations page.

The advice and information provided by ForbesAdvisor is general in nature and is not intended to replace independent financial advice. ForbesAdvisor encourages readers to seek expert advice in relation to their own financial decisions and investments.