GameStop (ticker: GME) saw a significant surge in its stock price after the appointment of Ryan Cohen as the new president and chief executive. This move signifies a confident bet on the activist investor's ability to revive the ailing fortunes of the videogame retailer.
In premarket trading, GameStop shares experienced a substantial 9.8% increase, reaching $18.83. The company wasted no time in electing Cohen as the CEO and president, effective immediately. Notably, Cohen will not receive any compensation for his new role.
Cohen's journey with GameStop began in June when he assumed the position of executive chairman, succeeding former CEO Matt Furlong, known for his cost-cutting strategy. Under Cohen's leadership, the company reported narrower quarterly losses, which bolstered its share value. Nonetheless, the stock still trails behind the remarkable heights it reached during the meme-stock frenzy of 2021.
Notably, few analysts continue to cover GameStop's performance. Michael Pachter from Wedbush has assigned a target price of $6 and an Underperform rating to the stock. Back in June, Pachter expressed concerns about GameStop's ability to swiftly reduce costs and overcome its losses.
Overall, GameStop's decision to appoint Ryan Cohen as president and chief executive reflects their confidence in his potential to steer the company towards a brighter future.
