"Hey, there's no question that GameStop's stock price has fallen because of the CEO's own words."
Its shares slid down after GameStop Corp CEO Ryan Cohen informed his investors that his focus on the gaming firm was to achieve profit.
Revenue without profits and the prospect of future cash flows are of absolutely no value to shareholders, Cohen commented, adding that he does not intend to sustain the hype that has sent stocks soaring due to the ongoing meme-stock frenzy.
So here it appears operating a chain of smaller stores across the country is the video game retailer's goal even though Cohen still hasn't disclosed details about the $4 billion in cash he now boasts.
As part of his years-long effort, Cohen moved his firm into a digital storefront* for its latest game releases shortly after being forced to close several of their distribution centers.
*Business online representation
Earlier in January 2024, GameStop shut down its non-fungible token (NFT) market operations due to ongoing regulatory uncertainty in the crypto space causing the Immutable X and Loopring collections to cease support from the video game retailer.
By Monday afternoon, shares of GameStop, down 13.4%, were trading at $24.86 before recovering above $25, but it should be noted that the decline has continued in recent weeks.
Please note Keith Gill known online as "Roaring Kitty" made his first social media appearance stating his $181.4 million in GameStop stock has caused its price to climb 300%.
It's true that Cohen is still unsure of what the next few months will hold for GameStop, but he is optimistic that the decision will improve the video game retailer's prospects.