Gamestop (GME) Stock Lost 17% After A Recent 27% Gain

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Shares of GameStop Corp. (GME) has lost nearly 17% over the past week because of the profit-taking. The company’s shares rose by more than 27% in the second last week of the last month when news surfaced that major investors came to be increasing their stakes in the firm.
Ryan Cohen, one of GameStop’s largest buyers, said his interest in the firm rose from 10% to 12.9%. Previously, Cohen was recognized as the co-founder of Chewy, the popular online pet store. Shareholders are expected to be able to use their expertise to further grow the digital sales of GameStop. In August 2020, when he acquired a stake of around 9 percent, Cohen first registered as an investor in GameStop.
GameStop runs a large distribution network of more than 6,000 video games and hardware purchase points. However, as the industry of distributing physical versions of video games steadily disappears, the firm is gradually turning its attention to e-commerce. The strength point of GameStop is its emphasis on new, fast-growing markets. Expanding its presence in the gaming hardware industry is the most exciting path for GameStop.
But not all GameStop ventures are viewed by investors favorably. The organization launched a new FlexPay service for renting games and gaming machines at the end of October. Three options are available: get now and pay later; wait with no commission; rent. The service uses the services of Quadpay, Klarna, and Progressive Leasing, financial infrastructure firms. As GameStop has set too high a rental price, which can alienate prospective buyers, investors felt the project was not especially promising. As the service has just been launched, it is still too early to worry about its acceptance. But if it’s successful, then GameStop may get a new opportunity for monetization.
The appetite for video games has risen against the backdrop of imposed social isolation, which has assured investors’ attention to GameStop.
During the past year, the company’s shares have risen nearly 200%. GameStop Corp. (GME) Stock was a bit up at 0.70% to end the session at $17.37.

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