GameStop rally fades a bit, as reports surface of search underway for new CEO
The Grapevine-based video game company is said to be searching for a replacement for CEO George Sherman.
An analyst Edward Woo threw cold water on GameStop s hot streak when he wrote in a note to investors increasing digital sales for video-game publishers is a looming risk given GameStop’s minimal market share.(John Minchillo)
GameStop Corp.’s shares fell on Monday, heading toward the longest losing streak in a year, after another analyst questioned the video-game retailer’s long-term potential despite activist Ryan Cohen’s latest efforts to revitalize the company.
GameStop Drops as Ascendiant Cites Rising Digital Game Sales
GameStop fell sharply after an analyst at Ascendiant Capital Markets downgraded the videogame retailer, noting that digital videogame sales are rising.
Author:
GameStop (
GME) - Get Report shares dropped on Monday after an Ascendiant Capital Markets analyst downgraded the Reddit-favorite stock to sell as digital sales of videogames rise.
Shares of the Grapevine, Texas, company dropped 9.7% to $143 at last check.
Ascendiant Capital Markets analyst Edward Woo downgraded GameStop to sell from hold and cut his price target on the retailer to $10 from $12.
The analyst said that the Reddit-fueled trading surge in GameStop is “likely to fade as digital threats increase.
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