GameStop Corp (NYSE: GME) dropped 11% on Monday to wrap its longest losing streak in almost a year, as skepticism grows regarding its long-term potential even as activist Ryan Cohen tries to revitalize the video game retailer. Shares closed at $141.09, a new two-week low as the company searches for a replacement for its CEO George Sherman.
The news of the possible leadership change resulted in Ascendiant Capital Markets analyst Edward Woo downgrading the stock to Hold. This has raised concerns about the company’s long-term potential with competition from the likes of Sony Group and Microsoft Corp intensifies. Woo said that the stock’s Reddit-trading jump will fade, and shares will dip to match the company’s weekly results and outlook.
GameStop stock soared almost 650% this year to push its market cap to $10 billion on optimism of a leadership overhaul. The company said, early this month, it will offer an additional $1 billion in shares, and this increased selling pressure. In the coming months, this is the stock to watch.
Editor and Computer Expert
A hardcore tech enthusiast and computer expert Uson Abdilazhanov who holds a degree in communications started writing in his personal blogs since 2012. That time he was interested in the technical part of the computer. But now the software aspect plays an important role in his career. Currently, he runs a PC building and repairing shop which helps a lot of designers and gamers who always like to try new things.