GameStop (GME), the prominent video game distributor and a darling of the meme stock frenzy, has announced the appointment of Ryan Cohen as its new CEO and President, according to a press release issued on Thursday. The decision follows the dismissal of former CEO Matthew Furlong in early June. Cohen, renowned as the founder of Chewy (CHWY) and a billionaire in his own right, assumes the role of Executive Chairman alongside his new responsibilities.
Despite possessing a net worth exceeding $1 billion, Cohen has opted to forego a traditional salary for his role as CEO and President, as stated in the press release. This move underscores his commitment to the company’s transformation and underscores his belief in GameStop’s potential.
Upon the breaking news of Cohen’s appointment, GameStop’s stocks experienced an immediate uptick, surging by 3% in early trading. This spike is indicative of the high interest and volatility surrounding GameStop’s stock, fueled by the involvement of Reddit users in recent months.
The selection of Ryan Cohen as the CEO of GameStop marks a pinnacle moment in his association with the meme stock movement. In 2021, Cohen emerged as an activist investor as Reddit communities rallied behind GameStop, driving its stock prices to unprecedented heights. His subsequent appointment to GameStop’s board of directors in January solidified his influence within the company.
Despite the fervor surrounding GameStop, the company recently reported a loss per share for the last quarter that exceeded analysts’ expectations. Additionally, the revenue fell short of street projections, though the company managed to show improvement compared to the same quarter the previous year.
Cohen’s appointment heralds a significant milestone in GameStop’s ongoing efforts to reverse its fortunes. Widely recognized for his innovative approach, Cohen is expected to inject fresh ideas into a company grappling with the challenges of adapting to the digital age. This transformation is crucial not only in the realm of gaming but also in the broader retail landscape.
Source: Yahoo Finance
