Game Stop Jumps as CEO resigns
GameStop (NYSE: GME) gathered on Monday after the brick-and-mortar video game retailer announced its succession plan as it sought to switch to e-commerce following a short history fueled squeeze by Reddit earlier this year.
The company said Monday that CEO George Sherman will step down on July 31 or earlier, upon the appointment of a successor. The board is conducting research to identify CEO candidates with the skills and experience to help accelerate the next phase of the company’s transformation, GameStop said in a statement.
While GameStop shares broke its all-time high of $ 483 in January, the stock is still up 720% for 2021. To take advantage of this massive rally, GameStop announced an early $ 1 billion share sale. April in order to accelerate its action. E-commerce transition led by activist investor and board member Ryan Cohen, co-founder of Chewy.
The company has also hired former Amazon and Google executive Jenna Owens as the new chief executive.
Some investors have also welcomed Keith Gill’s decision on Friday to double his GameStop bet, forgoing millions of dollars in quick profit on an options trade. Gill is perhaps the biggest influencer in the Reddit retail crowd.
In addition to exercising these options contracts, Gill purchased an additional 50,000 GameStop shares, bringing his total investment to 200,000 shares worth over $ 30 million.
Shares of GME climbed $ 12.62, or 8.2%, to $ 167.31.