GameStop names Amazon veteran as CEO; sales accelerate – Honolulu, Hawaii

Honolulu, Hawaii 2021-06-10 03:15:00 –

New York >> GameStop, a video game retailer that captivated Wall Street this year, today announced that it has welcomed Amazon veterans as the new CEO and Chief Financial Officer to support the long-awaited digital turnaround. did.

Matt Furlong, who recently oversaw Amazon’s Australian operations and spent nine years at the company, will become CEO on June 21st. A police officer on July 12th.

GameStop’s share price has skyrocketed, jumping more than 1,500% this year as a wave of low-funded investors rushed in after slumping in-store sales and expectations of becoming an e-commerce powerhouse. .. GameStop said today that the Securities and Exchange Commission staff is investigating the trading activities of its own and other companies’ stocks. GameStop said it did not believe the inquiry would hurt the company.

Investors have high hopes for Ryan Cohen, a leading investor who co-founded Chewy, an online pet supplies retailer.

GameStop said today that it posted a net loss of $ 66.8 million in the three months to May 1 and is still losing money. Analysts expected 1 billion. Despite closing some stores, sales increased by 25%.

GameStop became the face of the “meme stock” boom earlier this year. It encouraged enthusiastic bands of low-funded, novice investors to stack up with each other. It triggered a “short squeeze” and stocks splattered. T.

Professional investors “short-sold” many of GameStop’s stock and made bets that would make a profit if the stock price fell. They were skeptical. But after the stock price began to skyrocket, those shorts had to buy GameStop shares to escape betting.

Shares hit a record high of $ 347.51 in late January, but fell below $ 41 within a few weeks. Since then it has risen again and ended today at $ 302.56.

GameStop benefited from this surge by selling its shares earlier this year to raise nearly $ 552 million. This allowed the company to finish its latest quarter with $ 770.8 million in cash and limited cash. GameStop says it plans to take advantage of its improved financial strength to accelerate change. It has already canceled all long-term debt.

GameStop does not provide revenue forecasts and states that it considers sales growth to be the best way to measure performance. According to the company, sales in May increased by about 27% compared to last year.

GameStop’s share price fell 7% in transactions after the market closed.

GameStop names Amazon veteran as CEO; sales accelerate Source link GameStop names Amazon veteran as CEO; sales accelerate

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