By Dhirendra Tripathi

Investing.com – GameStop stock (NYSE:) traded 0.7% lower in Monday’s premarket trading after Ascendiant Capital cut its target for the meme stock while reiterating its ‘sell’, citing significant digital and execution risks.

Now, the brokerage is estimating that the stock’s 12-month target price will be $23, which is a decrease from $24. Stock closed Thursday at $152.14, down 1.2%

As reported by StreetInsider, analyst Edward Woo states that the new target reflects the estimated current cash value per share and, “the small chance for a highly successful and valuable company transformation” is offset by the significant risks.

GameStop began the year as Reddit’s most favorite meme stock. It also fuelled its rally by over 90%, now being investigated at the SEC. It was the result of coordinated trading among Robinhood (NASDAQ) Crowd and subsequent self-fulfilling momentum that created its own fan base, placing it in the middle of the battle between big Wall Street Institutions and the retail crowd.

Over the past year, the company has restructured its management and raised funds. With the end of the year now, the company’s efforts to fulfill its expectations remains in flux. The stock is now down over 68% from the year’s high, though still up 700% YTD.

The net loss of $105 million in the third quarter — its sixth in the last seven — was wider than expected and also more than five times the loss in the last financial year’s third quarter.