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Source: Oleg Krugliak, Shutterstock
GameStop Corp. (GME:US or NYSE: GME) stock climbed nearly 14 per cent on Monday, March 8, after it roped in Wall Street darling Ryan Cohen, the co-founder of Chewy.com (CHWY:US or NYSE: CHWY), for transitioning into e-commerce platform.
The company further announced that it is looking for a new Chief Financial Officer (CFO) with e-commerce and relevant technical experience.
In its latest exchange filing, GameStop said that it has selected shareholder Mr Cohen to head a new committee to assist the video game retailer in its transition to e-commerce operations. The company’s business transformation committee includes Alan Attal and Kurt Wolf along with Ryan Cohen.
A major stockholder of GameStop, Mr Cohen has been advocating the firm to upgrade its business from a brick-and-mortar model to a digital business amid its massive Reddit-backed buying.
Let us check out this meme stock performance:
GameStop Corp. (GME:US or NYSE: GME)
The stock started blooming in late-2020s after it became a favorite of Reddit’s retailer investors’ forum. It has zoomed over 3,378 per cent in one year. Its market cap swelled to more than US$ 10 billion.
It has skyrocketed over 631 per cent year-to-date (YTD), driven by the meme stock rally. It has a remarkable 50-day average volume of 46.60 million.
The stock zoomed to its all-time high of US$ 483 per common share. Following a heavy selloff last month, it has plunged as much as 71.48 per cent to US$ 137.74 per share.
Image Source: Kalkine Group @2021
In the third quarter ended on October 31, the retailer reported a surge of 257 per cent year-over-year (YoY) in its international e-commerce sales. However, its conventional store sales dropped by 24.6 per cent YoY.
GameStop Outlook
The company expects to capitalize on its meme-fueled valuation through this latest transformation initiative. It has already asked its major shareholders to take charge of its business transition from traditional stores to an e-commerce platform.