GameStop shares slide 16% following Friday’s 40% sell-off

Meanwhile, meme stock champion Keith Gill hosted his first livestream in a few years Friday. He revealed that he did not have any institutional backers and the GameStop positions he had shared in screenshots were his only bets. Gill also reiterated his previous investing thesis and offered little new reasoning behind his large stake.

Michael Pachter, GameStop analyst at Wedbush, said he remains skeptical that the company could result in any meaningful turnaround after multiple failed strategies recently.

“We cannot see how GameStop adds any value by operating any new businesses, particularly not now after its entire C-suite was either terminated or chose to depart,” he said in a note.

Pachter noted that GameStop’s prior strategy to be like Amazon was “an abject failure” as three former Amazon executives it hired to pursue the strategy left the company. Then, its plan to sell NFTs fell apart after it partnered with the now-defunct FTX, he added.

The analyst thinks that any boost GameStop got from Gill could turn out to be short-lived.

“We suspect that [Friday’s] live stream from influencer Keith Gill (Roaring Kitty) will keep shares elevated long enough to the company to complete its [at-the-market share offering], but with no clear strategy, we suspect the share price will once again begin to descend and approach our new price target,” Pachter said.