- Wednesday, October 16, 2024
GameStop stock experienced a significant increase on Thursday following the election of Ryan Cohen as the company's president and chief executive. This development reflects the market's optimism regarding the potential for this activist investor to rejuvenate the struggling videogame retailer.
In premarket trading, GameStop (ticker: GME) shares saw a rise of 9.8% to $18.83. The board of directors promptly appointed Cohen as CEO and president, effective immediately. Notably, he will not receive any compensation for assuming this role.
Cohen assumed the position of executive chairman at GameStop in June, after the removal of former CEO Matt Furlong, who had been focused on implementing a cost-cutting strategy.
Following this change in leadership, the company reported a narrower quarterly loss, leading to an improvement in its share performance. However, it is important to note that these shares still have a long way to go to reach the levels witnessed during the meme-stock frenzy of 2021.
Currently, there are only a small number of analysts covering GameStop. Michael Pachter from Wedbush has assigned a target price of $6 for GameStop, along with an Underperform rating. In June, Pachter expressed doubt that GameStop would be able to swiftly reduce costs enough to mitigate its losses.
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