GameStop's shares have taken a significant hit, plummeting by over 13% after CEO Ryan Cohen's unexpected announcement about the company's future plans. The gaming retailer's stock had been on a rollercoaster ride, fueled by speculation and hype, but Cohen's decision to focus on profitability and sustainability has sent the price tumbling.

During the company's annual shareholders meeting, Cohen emphasized the importance of revenue without profits and prospects of future cash flow. He stated that the company will operate a smaller network of stores with an expanded assortment of higher-value items that fit into their trade-in model. This move is part of Cohen's long-term effort to pivot the company into a digital storefront for the latest game releases.

The CEO's decision to avoid the hype surrounding the meme-stock frenzy has been met with skepticism by some investors. However, Cohen remains optimistic that his approach will improve the outlook for GameStop. The company's shares have been volatile in recent weeks, with periods of significant gains followed by sharp drops. Despite this, the CEO's commitment to sustainability and profitability is expected to have a lasting impact on the company's future.

In the short term, the stock price has dropped significantly, with shares trading at $24.86 by Monday afternoon. However, the company's cash reserves, which stand at $4 billion, provide a solid foundation for future growth. The next few weeks and months will be crucial in determining the direction of GameStop's stock, but Cohen's decision to prioritize sustainability is expected to have a lasting impact on the company's fortunes.