- NYSE:GME gained 0.85% amidst an unsettled day for the broader markets.
- GameStop announces a corporate shakeup that sees Ryan Cohen takeover as Chairman of the Board.
- Meme stocks take a step back on Wednesday, as Clover, AMC, and Wendy’s tumble.
NYSE:GME has finally provided a vision of who will be taking over the next phase of the company’s digital transformation. It also reported a 25% year-over-year rise in sales and a 14% growth in revenues, as video games were in high demand during the COVID-19 pandemic. Shares of GameStop edged slightly higher, gaining 0.85% to close the trading session at $302.56. After hours was a different story though as GameStop announced it would be selling up to 5 million shares from time to time to capitalize on the high stock price, which sent shares tumbling by as much as 7.5%.
The big news of the day was the corporate shakeup that saw Ryan Cohen take over as Chairman of the Board. Cohen also announced that Matt Furlong would be the new CEO and Mike Recupero as the new CFO. Both were previous executives from Amazon (NASDAQ:AMZN), a sign that GameStop is pushing forward with its transformation into an eCommerce platform. Unfortunately, Cohen gave no details about the strategy for the ongoing transformation of the company, leaving investors in the dark about what lies ahead.
GME stock forecast
Aside from GameStop, most of the other meme stocks took a breather on Wednesday. AMC (NYSE:AMC) fell by 10.37%, Clover Health (NASDAQ:CLOV) dropped 23.61%, and Wendy’s (NASDAQ:WEN) lost 12.68%, after all ripping higher the day before. Not to be outdone, some new names appeared on the WallStreetBets target list including WWE (NYSE:WWE) which surged by 10.89% and Invesco Mortgage Capital (NYSE:IVR) soared by 17.51%.
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