What's Going On With GameStop Stock?

GameStop Corp GME shares hit new 52-week lows on Monday and closed down more than 6%. Here's a look at what's been going on. 

What To Know: GameStop shares closed down Monday for the third straight session since executive chair Ryan Cohen was appointed president and CEO of the company.

Cohen sent an email to employees immediately following his appointment stressing the need for "extreme frugality."

"It is not sustainable for GameStop to operate a money losing business​​," Cohen said in the memo obtained by CNBC. 

"Every expense at the company must be scrutinized under a microscope and all waste eliminated. The company has no use for delegators and money wasters. I expect everyone to treat company money like their own and lead by example."

The continued slide in shares appears to be due to investor concerns about the current financial standing of the business and Cohen's ability to turn it around. Since Cohen's firm RC Ventures took a significant stake in the company and pushed for changes, GameStop has tried to reinvent itself by hiring former Amazon executives and launching an NFT marketplace, but nothing seems to be working for the video game retailer facing an increasingly digital video game landscape. 

GameStop's shareholder base is largely retail and the company appears to be entirely in the hands of Cohen as it has fired multiple executives this year. Cohen said he was focused on capital allocation when he took over as executive chair earlier this year. It remains to be seen if the activist investor can figure out a way to turn the business around.

At the beginning of September GameStop reported a loss of 3 cents per share for the second quarter, which was improved from a loss of 14 cents per share in the first quarter. 

See Also: Movie "Dumb Money" Unpacked: The Untold Reality of the GameStop Meme Stock Frenzy

GME Price Action: GameStop is down more than 16% since the start of the year. GameStop shares were down 1.36% at $15.18 at the time of publication, according to Benzinga Pro.

Photo: JJBers from Flickr.