GameStop ( shares moved higher Thursday after the video game retailer said one if its key investors and the spearhead of its e-commerce transition will be named as chairman of the company's board.>
Ryan Cohen, the founder of Chewy.com ( who built a stake in the company earlier this year as part of an agreement to e-structure its board and focus on digital sales and not simply "remain a videogame retailer that overprioritizes its brick-and-mortar footprint and stumbles around the online ecosystem" will be elected as company chairman and, along with other board members, be 100% compensated in GameStop equity.
GameStop shares have surged nearly 800% since Cohen began working with group, helped in no small part by a Reddit/WallStreetbets-fueled rally that lifted shares to as high as $483.00 in late January.>
GameStop shares were marked 4.3% higher in premarket trading Thursday following news of Cohen's election, indicating an opening bell price of $185.50 each.>
Last month, GameStop posted its ninth consecutive quarterly sales decline with a topline of $2.122 billion that missed Wall Street forecasts, but hinted at plans - which were eventually made public on April 5 - to sell up to 3.5 million shares and raise $600 million to fund its strategy shift.>
The group did, however, see a 175% surge in e-commerce sales over the first quarter and hired former Amazon ( executive Jenna Owens drive its online shift, but provided scant details as to how and when the transition might happen; company executives not only decline to provide near-term profit forecasts, but they also refused to take questions from analysts in what was a packed post-earnings conference call.