GameStop spikes 14% after announcing board member Ryan Cohen will lead its transition to e-commerce

Courtesy of Ryan Cohen; Chewy; GameStop; Olly Curtis/Future Publishing via Getty Images; Reddit; Samantha Lee/Insider

  • GameStop rose 14% in pre-market trading after Ryan Cohen was announced as chairperson for a new committee.
  • Cohen will lead the video-game retailer’s transition to an Amazon-like e-commerce business.
  • Shares in GameStop rose more than 1,600% in January amid the Reddit-fuelled trading frenzy. 
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Shares in GameStop rose 14% in pre-market trading Monday after the company announced board member and Chewy founder Ryan Cohen will lead its strategic transformation.

Cohen has been appointed chairperson of a planning committee that aims to transition the company to an e-commerce business. Members of the committee include Alan Attal, Kurt Wolf, and Cohen himself.

Cohen has been actively pushing for the company to gravitate away from its traditional brick-and-mortar model to an Amazon-like e-commerce titan.

Since the committee’s formation, they appointed Amazon vet Matt Francis as CTO, hired two executives to lead the customer care and e-commerce fulfillment functions, and have been seeking a replacement for prior CFO Jim Bell. Bloomberg reported earlier on Monday Cohen would be tapped for the role.

Shares in GameStop rose more than 1,600% in January after a wave of Reddit-fuelled retail traders rebelled against Wall Street hedge funds that were betting against the stock. 

Shares were up almost 14% in pre-market trading at $156.51 per share.

Source: Read Full Article