GameStop Appoints Ryan Cohen as New CEO, Prompting Stock Surge
In a surprising announcement on Thursday morning, GameStop revealed that billionaire activist investor Ryan Cohen would be taking over as the company’s chief executive. This move comes shortly after Cohen was made executive chairman following the firing of former CEO Matthew Furlong earlier this year. GameStop’s shares immediately surged nearly 10% in premarket trading, reflecting investor confidence in the leadership change.
Cohen, widely regarded as the “king” of meme stocks, rose to prominence as the founder of the successful pet food retailer Chewy. He bought a stake in GameStop last year and joined the board in 2021, coinciding with the height of the meme stock phenomenon. Despite the company’s recent struggles, including being at the center of the meme stock craze of 2020 and 2021, Cohen has remained optimistic about GameStop’s potential.
Notably, GameStop emphasized that Cohen would not be receiving any compensation for his role as CEO, president, and executive chairman. The decision to forgo payment could signal Cohen’s dedication to turning the company around and regaining investor trust, as well as his belief in the long-term value of GameStop.
GameStop’s financial performance has been mixed in recent times, with some positive signs amid ongoing challenges. In its second-quarter financial results, the retailer reported a narrower loss compared to the same period last year, along with a slight increase in revenue. This news, coupled with Cohen’s appointment, has brought a renewed sense of optimism to investors.
The appointment of Cohen as CEO suggests that GameStop is actively seeking a fresh start and a new direction under his leadership. His success with Chewy and his reputation as an activist investor have positioned him as an influential figure in the industry. As meme stocks continue to gain attention and speculative trading persists, the gaming retailer will be closely watched to see if Cohen can harness the potential of this unique market phenomenon.
For more information on GameStop’s latest announcement, you can read the full release from the company.