Shares of GameStop Corp. fell 6.9% Monday and are trading at $15.33, putting the stock on pace for its lowest close since Feb. 23, 2021, when it closed at $11.24, FactSet data show.
The stock, which is down for four of the last five days, is on pace for its largest percent decrease since June 8, 2023, when it fell 17.89%, according to FactSet.
Activist investor Ryan Cohen was named CEO of GameStop
last week, marking the latest chapter in his attempt to breathe new life into the video-game retailer and original meme-stock company.
Cohen, the co-founder and former CEO of Chewy Inc.
made his first investment in GameStop in August 2020 via his investment firm RC Ventures. News of Cohen’s 9% stake in the gaming retailer sent its stock surging. The activist investor quickly began pushing for an overhaul of GameStop, with a focus on digital sales, and he joined the company’s board in January 2021. He consolidated his power at GameStop when he became the company’s chairman in June 2021.
Ryan Cohen becomes GameStop CEO and social media reacts: ‘Changing the paradigm on Wall Street’
In its statement announcing Cohen’s election as CEO, GameStop confirmed that he will not receive compensation for serving as the company’s president, chief executive and chairman.
The video game retailer reported better-than-expected second-quarter results last month, boosted by international sales and what the company described as “a significant software release.” GameStop is also ramping up its efforts to control costs.
Ryan Cohen has no ‘new idea’: Analyst blasts ‘doomed’ GameStop after leadership announcement
GameStop shares are down 17% in 2023, compared with the S&P 500 Index’s
gain of 11.2%.