Video game retailer GameStop has announced its new CEO and CFO and it should be nothing short of promising for the struggling company. GameStop will see the arrivals of ex-Amazon execs Matt Furlong and Mike Recupero as CEO and CFO respectively. This continues the company's transition into the e-commerce industry, as it attempts to rebrand itself and save itself from otherwise certain bankruptcy.
GameStop's stock has been in yet another squeeze since the end of May, resulting in its price going as high as $337. The stock has largely been trading high in anticipation of today's earnings and shareholder's meeting. It's a stock that doesn't seem to want to die, at least not without a fight, and retail investors have been battling hedge funds and shorts for months in an effort to see how high this thing can go. It looks like today's news may help give the ammo needed to fight that fight.
GameStop's earnings came in above expectations today (via CNBC), showing a bit of an upward trajectory for the struggling retailer. GameStop also continued to add talent from the e-commerce industry by recruiting ex-Amazon execs Matt Furlong and Mike Recupero as CEO and CFO respectively. GameStop did not discuss its NFT venture that has only gained more momentum in the last few weeks, but it'll be yet another advantage to helping justify the value of its stock as time goes on.
GameStop is still widely considered to be overvalued, but that didn't stop the stock from rising 111% in the last month. In after-hours trading, the stock became incredibly volatile and bounced around the high $200 range. Whether or not today's news will see an explosive rise in the stock throughout the remainder of the week remains to be seen, but given the stock seems to rocket with any inkling of good news, it's going to be fun to watch.
Multiple billions of dollars have been bled from shorts betting against the company. Speculation and reports indicate that NBA legend Michael Jordan lost $500 million on GameStop and its wild stock market frenzy earlier this year due to his connection to a hedge fund. As retail investors continue to battle it out, it remains a question of who will blink first and when. Many of the tried and true scare tactics don't seem to be scaring the investors holding the line, even as they watch the beloved meme stocks plummet by dozens of dollars in mere minutes. As of right now, it looks like the saga of the GameStop stock will continue for a while longer.
Source: CNBC