Video game vendor GameStop, listed on the New York Stock Exchange as GME, has faced a challenging beginning to the year with its stock experiencing a decline mirroring the broader market trend.
This decrease in stock value coincides with the company’s efforts, led by CEO Ryan Cohen, to implement cost-cutting measures and refocus its business operations.
Under Cohen’s direction, GameStop is undergoing a strategic transformation that prioritizes its fundamental business activities such as the sale of games, consoles, and gaming merchandise. Simultaneously, peripheral ventures are witnessing reduced investments, underscoring a commitment to profitability and the enhancement of the company’s core products.
Prediction of GameStop Stock Price Using AI
In an attempt to forecast GameStop’s future stock performance, Finbold has turned to artificial intelligence (AI) predictions sourced from CoinCodex.
Based on data collected on January 21, the AI tool anticipates GameStop’s stock to potentially reach $34.73 by the end of 2024. This projection suggests a nearly 140% increase from the current stock price, indicating a positive outlook for potential investors.
GameStop stock price prediction for December 31, 2024. Source: Coincodex
Future Strategies for GameStop
Meanwhile, GameStop is actively executing various strategies to align with its long-term objectives. Notably, the decision to close its non-fungible tokens (NFT) marketplace, operational for approximately 18 months, is a significant move.
The company attributes this action to uncertainties surrounding crypto regulations, signaling a strategic reassessment of its involvement in non-core business areas.
Moreover, investors are closely monitoring Cohen’s leadership approach, characterized by a personal investment in the company’s success. Since assuming the position of board chairman, he has enforced equity ownership guidelines, leading to increased executive turnover at GameStop.
Cohen has previously stressed the importance of cost-effectiveness to streamline operations and steer the company towards profitability. This communication underscores the potential risks to GameStop’s survival if these strategies do not yield the desired outcomes.
Analysis of GME Stock Price
As of the latest update, GameStop’s stock is trading at $14.51, reflecting marginal gains of approximately 1.5% in the last 24 hours. However, on a year-to-date basis, GME has declined by 12%.
GameStop one-year stock price. Source: Finbold
Furthermore, an evaluation of GameStop’s technical indicators aligns with bearish sentiments. A review of the one-day metrics obtained from TradingView indicates a ‘sell’ sentiment at 14, with moving averages suggesting a ‘strong sell’ at 13. Oscillators are signaling a ‘buy’ sentiment at 7.
GameStop technical analysis. Source: TradingView
While external market conditions influence GameStop’s stock performance to some extent, the company’s future outlook predominantly hinges on the successful execution of its ongoing business strategies.
Disclaimer: The information provided on this platform should not be construed as investment advice. Investing involves risks, and capital is subject to potential losses.
