GameStop shares surged more than 100% Wednesday as investors pour in to the brick and mortar retailer during a C suite shakeup.
Stocks were stopped when there was less than 30 minutes left in the trading day. Stocks were stopped with less than 30 minutes remaining in the trading day.
GameStop announced Tuesday that Jim Bell will be leaving as its chief financial officer.
Sources close to the situation claim that Bell did not leave unassisted, but Ryan Cohen forced him out. Ryan Cohen, co-founder of chewy, made an investment in GameStop last year to support the company’s growth online.
GameStop shares soar more than 100% amid executive shuffle
Record Dow close, and a different’ type of money currently on the markets
Bloomberg News reported Tuesday evening that GameStop’s board had forced Bell to the side to speed up its turnaround, according to sources familiar with the matter.
Cohen’s appointment to the GameStop board helped drive the stock up, which had been heavily shorted in January. This caused a dramatic short squeeze at GameStop, which triggered retail trading mania that finally drew attention from Congress.
Jefferies equity analyst Stephanie Wissink stated to clients that, while activist settlements can often lead to leadership changes, Mr. Bell’s exit was mutual, non-immediate, and implied no disagreements between the company/board. We believe Mr. Bell should be commended for his efforts in protecting GME equity at the end of the last hardware cycle, when sales were down sharply.
Jefferies stated that GameStop would probably seek out a new CFO with tech backgrounds, rather than retail, because GameStop’s focus is on e-commerce growth.
Reddit traded some other trades on Wednesday afternoon after-hours trading. AMC shares rose 22% and Koss rose 57%.