The original meme name, GameStop (NYSE:GME) stock, is holding pretty solid, shedding just 9.7% of value in the last month. Shares still have a mouth-watering one-year return of 3,410.15%.

Nevertheless, things are looking up for the bears. GME stock has corrected substantially from weekly highs of $195.41 in July.

Over the last three months, shares have oscillated wildly, but in the last month, the trend has been downward, barring the occasional blip. The short ratio, a key metric for Reddit traders pumping the stock, has plummeted to 17.26% of free-floating shares, from 114% in mid-January.

After receiving a $20 billion hit, GME bears became skeptical about taking on the Reddit crowd.

“Short squeezes can only last as long as there is a large short position in a stock. Once that dissipates, the situation changes completely,” said Matt Maley, chief market strategist at Miller Tabak & Co.

Hence, if you were thinking about investing in GME stock for short-term profits, think again.

A Closer Look at GameStop Stock

So, what should one do with GME stock? There are only three options left on the table. Option number one, you could invest for short-term gains in hopes of another short squeeze. Considering the current scenario, that seems unlikely.

Option number two, you could go long in the hopes of GME’s e-commerce strategy, which has served as a factor in keeping shares and valuation elevated.

Option number three, you could cash out and invest in stable mega stocks; dividend plays, and/or companies profiting from the broader economic recovery.

Ultimately, my advice would be to take your profits and invest in more stable, mature companies. There can be little blips along the way, but not enough to convince me there is a long-term growth story here.

Before Redditors brought GME back to life, there was a clear concern it was headed for bankruptcy. That opinion is diminishing now that it has shored up its balance sheet and virtually eliminated debt.

As of May, the video game retailer has cash and short-term investments of $694.7 million before equity offerings which raised a total of $1.677 billion, and before paying down debt.

Most of this cash will help to fuel GME’s e-commerce strategy, which Ryan Cohen is steering.

Online sales skyrocketed 309% and represented more than a third of holiday revenue. And with GameStop continuing to close down brick-and-mortar stores, e-commerce sales will continue to dominate the total pie for GME.

The company has appointed Matt Furlong as Chief Executive Officer and Mike Recupero as Chief Financial Officer, both former Amazon (NASDAQ:AMZN) executives. Alongside Cohen, these officials will be key in laying the groundwork for an expansive e-commerce strategy.

The deal between Microsoft (NASDAQ:MSFT) and GME is also a big positive. Although the two companies signed it last year, the healthy demand for the Xbox All Access bundle, which includes an Xbox Series S or Xbox Series X, and 24 months of Xbox Game Pass Ultimate, will continue to be a substantial driver of digital sales.

Next Hurdles for GME Stock

Despite more than eight months since the start of meme stock mania, GME stock has held surprisingly steady.

Yes, shares have fallen substantially from an intraday record of $483 on Jan. 28, but they remain far and away ahead of the 52-week low of $4.44 per share.

At this juncture, $200 is a key price level bulls will be targeting. Although a short-term turnaround is possible, it looks unlikely that GME can make a run for $200, considering the 50-day simple moving average (SMA) and the 100-day moving average have proved tough resistance over the last month.

This is a meme stock we are discussing. The one that started it all. So, anything can happen. We can always have the errant spike. So far, the situation is holding steady.

It is important to underline that GME remains an unprofitable enterprise. The enhanced liquidity and e-commerce moves give the company some breathing room and investors a semblance of a story to latch onto.

Ultimately, fundamentals will start to reflect on the stock price.

Not an Exciting Prospect

GameStop management has done a great job in putting the wheels in motion for a turnaround. However, the timetable for the comeback is sketchy. Yes, we will see e-commerce sales gain ground in the coming quarters, but the company remains unprofitable and will remain so for some time.

Hedge funds are also wary of shorting GME stock. So the prospects of a short squeeze are slim. In these circumstances, there are few reasons to treat GME stock as a viable investment either for the short- or long term.

There will be momentary spikes along the way, but the general trajectory is down.

On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.