GameStop Corp. ( GME ) shares are trading higher Thursday following a social media post by Keith Gill, known as “Roaring Kitty,” a prominent figure in the 2021 GameStop ( GME ) short squeeze.

What To Know: On Dec. 25, Gill shared an image of a wrapped gift on X, formerly Twitter. The post sparked speculation among retail traders, driving increased interest in GameStop ( GME ) shares during overnight trading. Shares rose 7.68% in after-hours trading on Robinhood, reaching $33.50 at one point.

Cryptocurrencies tied to Gill's online persona also reacted. The meme coin GmeStop (GME) rose 5%, with its market capitalization reaching $31.26 million, while Kitty Inu (KITTY) surged by 17.96%.

The movement in GameStop's ( GME ) stock could reflect continued volatility driven by retail trader enthusiasm rather than changes in the company's fundamentals.

Should You Buy GME?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like GameStop ( GME )‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. GameStop ( GME ) does pay a dividend, which yields 10.93% per year as of the closing price on Dec. 26, 2024. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 17.75%, you'll need to buy a share of PermRock Royalty Trust by the Dec. 31, 2024. Once done, you can expect to receive a nominal payout of $0.05 on Jan. 15, 2025.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on GameStop ( GME ) will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

GME Price Action: GameStop ( GME ) shares were up 5.43% at $32.82 at the time of writing, according to Benzinga Pro.

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