If it weren’t for the enthusiasm of some Reddit users, video-game retailer GameStop (NYSE:GME) wouldn’t have become a buzzworthy business on Wall Street. Yet, short squeezes aren’t the only potential catalyst for GME stock. As the company ventures ambitiously into the metaverse, GameStop shares should have three-digit potential in 2023.
That’s right: $100 is conceivable even if GameStop has its fair share of skeptics. Granted, GameStop’s financials aren’t ideal, and not every share-price pump was sustainable.
Still, GameStop’s brightest moment could be just up ahead. Sure, another round of meme-stock trading could get GameStop’s investors buying again, but it’s a blockchain bet that might really pay off over the coming months.
GME Stock Could Be a Short-Squeeze Target in 2023
As you may recall, there was a frenzy of buying activity surrounding GME stock in 2021. Plus, there was another, somewhat less intense rally earlier this year.
It seems, then, that social media users sometimes rally around GameStop, and this fuels occasional share-price pumps. The next short-squeeze-fueled rally could happen in 2023, but how far would it go?
That’s difficult to determine, but S3 Partners CEO and Managing Partner Bob Sloan offered an eye-opening possibility. “If this stock goes past $30, you could see something parabolic,” Sloan suggested.
So, be sure to keep an eye on the $30 level while also monitoring the short interest in GME stock. According to Fintel, the recent short interest against GameStop was around 53 million shares. If this buildup of short positions continues into 2023, the snapback effect of a squeeze could be epic.
GameStop’s NFT Partnership Could Provide a Powerful Revenue Source
The prospect of a massive short squeeze is exciting, but it’s not something that GameStop’s long-term investors should count on. Instead of relying on hopes and assumptions, stick to the facts — and it’s a fact that GameStop is partnering with ImmutableX to provide a non-fungible token (NFT) marketplace.
The marketplace went live not long ago, and it’s more popular than some doubters probably imagined it would be. According to a tweet from ImmutableX, “Within the first week of our launch with @GameStopNFT Marketplace, we’ve reached $5,000,000+ volume traded #onIMX.”
ImmutableX provides a vast, blockchain-powered marketplace where NFT transactions can be processed very quickly. Therefore, it was smart for GameStop to team up with ImmutableX in order to gain a firm foothold in the emerging metaverse.
As GameStop’s press release explains, “the partnership will allow for 100 percent gas-free and carbon-neutral minting and trading on the Company’s NFT marketplace.” If the metaverse continues to expand and gain traction in 2023, don’t be surprised if GameStop emerges as a leader in NFT-enhanced gaming.
GME Stock Can Easily Hit the $100 Mark in 2023
What’s the best reason to hold GameStop shares in 2023? It’s fine to hope for a massive short squeeze. However, this shouldn’t be the main reason to stay invested next year.
Going forward, GameStop’s shareholders can monitor the trading volume on the company’s NFT marketplace with ImmutableX. If the data indicates growth, this should provide a significant revenue boost for GameStop. With that, and possibly with the assistance of Reddit traders, GME stock could easily reach $100 in 2023.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.