GameStop Corp (NYSE:GME) stock has lost close to 16% this week following its annual shareholder meeting, where CEO Ryan Cohen emphasized a strategic pivot towards profitability through cost reduction.

Cohen also emphasized the need to avoid the “hype” associated with the meme-stock frenzy, Bloomberg reports.

Also Read: Short Seller Citron Closes Short Position In GameStop, Says ‘It Respects Market’s Irrationality’

GameStop has closed numerous locations, shut down two distribution centers, and laid off employees to cut costs.

Michael Pachter, an analyst at Wedbush Securities, criticized the company’s business model, per the report.

The company announced a 75 million share sale program, raising $2.14 billion, capitalizing on a stock rally driven by meme-stock trader Keith Gill.

Piers Harding-Rolls, research director for games at Ampere Analysis, expected support from the company’s cash position and upcoming releases of new video game consoles from Sony Group Corp (NYSE:SONY), Nintendo Co, and Microsoft Corp (NASDAQ:MSFT).

Price Action: GME shares traded lower by 1.66% at $24.29 premarket at the last check on Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Shutterstock