The share price of gaming and entertainment services provider GameStop (NYSE:GME) has almost plummeted back to the initial meme-stock mania days. Yesterday, the company announced the appointment of activist investor Ryan Cohen as its new CEO.
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Cohen, the largest stockholder in GME, will not be receiving any compensation for his new duties. Now, the new CEO is looking to install a culture of extreme frugality at the retailer. In a memo to employees, Cohen has asked everyone to scrutinize every expense at the company and eliminate all waste for its survival.
Can GME Reach $1,000?
The advent of the digital age has meant sagging fortunes at GameStop as gamers now buy games online. Wedbush’s Michael Pachter, the only analyst tracking GME, has reiterated a Sell rating on the stock alongside a $6 price target. This implies 64.9% downside risk for the stock.
This downside would be on top of the steady price erosion investors have endured over the past three years. From a high of nearly $81 at the beginning of 2021, GME shares have now plummeted to the $16 level.
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