GameStop shares continue to surge with an unstoppable vengeance after the billionaire investor Ryan Cohen comes on board to head the company’s transformation committee.
The former CEO and co-founder of pet supplies retailer Chewy had announced to join GameStop at the beginning of 2021. He has joined the Board of Directors and will be heading a three-person committee that will evaluate newer dimensions to uplift the firm’s operations and digital capabilities.
The other two persons in said committee are Alan Attal, a former Chewy executive, and Hestia Capital founder Kurt Wolf who has been a board member since last June.
The committee will also include Kelli Durkin, one of the executives of Cohen at Chewy, and Amazon Web Services (AWS) veteran Matt Francis as the chief technology officer.
Reddit’s WallStreetBets forum led to an unprecedented surge in GameStop’s share price back in January. Their battle against the share market influencers proved that the gain in GameStop’s share price was not bullish. The WallStreetBets forum was over the moon with the announcement of the committee led by Ryan Cohen. It garnered approximately 12,000 upvotes on the site within minutes of the announcement.
GameStop shares have surged up to 35% or by $3-4 billion in terms of market value. The current price is $182 which is almost 13 times more than the average price $13.44.
GameStop’s share price has already been 1000% up this year. It did drop to 46% at the end of January.
The only alarming concern to note is that nobody knows for how long GameStop will be able to retain its share price at this high staggering price. The skyrocketing surge in share price which stayed for weeks has proven that this, not a one-time occurrence.
Market analyst Edward Moya claimed that the involvement of institutional money in the recent upswing of GameStop shares cannot be denied even though it was fueled by the meme stocks volatility.