Shares of GameStop Corp. /zigman2/quotes/203755179/composite GME -0.78% fell 0.7% in premarket trading Monday, which puts them in danger of a sixth straight loss, after Ascendiant Capital analyst Edward Woo turned bearish on the videogame retailer, citing a "hazy" 2021 outlook despite strong new consoles launches. Woo cut his rating to sell after being at hold since June 2019. He lowered his stock price target to $10, which is 94% below Friday's closing price of $158.36, from $12, which makes him the most bearish of the seven analysts surveyed by FactSet. Woo said he remains "very concerned" about the long-term prospects for its video game business, "especially once hardware sales temper as the installed base matures. He also commented on the frenzied trading surrounding the meme stock. He said the stock's big rally over the past several months -- it's up 740.6% year to date through Friday -- is due to "wild investor optimism" about the company's prospects and valuation and "a humungous short squeeze," helped by the addition of Ryan Cohen to the company's board. "Due to the popularity of GameStop on Reddit chat boards and with Robinhood retail investors, GameStop shares appears to no longer trade on traditional fundamental valuations or metrics, but on retail investors sentiment, hope, momentum, and the powers of crowds," Woo wrote in a note to clients. "This makes short term price movement forecasts nearly impossible...but we believe that over the long run GameStop's current elevated share prices will come back down to match its current weak results and outlook." The stock has lost 17.3% amid a five-day losing streak through Friday, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.07% gained 2.7% last week.