Analyst says GameStop’s stock is still overpriced because traders hope to sell it to someone else at a higher price

GameStop’s stock is trading at 2.4 times its actual cash value, raising concerns over its valuation as Wedbush analyst Michael Pachter sets a target price of 13.50 USD, significantly lower than the current 30.15 USD.

Pachter criticizes GameStop’s reliance on the ‘greater fool theory’ while noting the company has not established any substantial growth strategy, especially after showing a decline in revenue from retail sales.

Investors may be left exposed, as Pachter warns that the speculative nature of trading in GameStop shares may lead to significant losses once the disconnect from actual business value becomes apparent.