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Nearly $200 Surge in GameStop stock Price

On Monday, the GameStop stock shot up, closing at $194.50, a 41% increase from its opening price. After the passing of the COVID relief bill in the Senate on Saturday, the stock market moved up. Along with this, the company’s news of developing a new e-commerce strategy with the founder of Chewy.com, Ryan Cohen.

The US Senate passed the historic $1.9 trillion pandemic relief bill. Apart from this, the leading pet e-commerce store founder, Ryan Cohen, was tapped to create the committee to restore GameStop’s outdated business model. Both these events simultaneously fuelled the soar in the share price of the company.

Last year, Cohen made a large investment in the video game retailer. Cohen was invited to join the GameStop board of directors after building a 10% stake in the company. He will be leading a committee to develop initiatives to transform GameStop, the company confirmed in a press release on Monday. The focus of GameStop’s new face will be to make the company a technology business and look for improvement areas.

At the end of January, the GameStop stock skyrocketed due to the push by traders on the subreddit. The share value reached $480, since then, the amount kept dropping, reducing much of its value. Shares moved up again sometime in late February following Jim Bell’s resignation. Jim Bell was the retailer’s chief financial officer.

According to the Business Insider, Bell did not leave willingly. The board reportedly pushed him out due to a lack of faith. It was also an initiative to reshape the company by Cohen.

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