GameStop shares soared above 100% Wednesday as more investors came in to the brick-and-mortar retailer during a CSU shakeup.
Stocks were stopped less than 30 mins into the trading day. Stocks closed the day up 103.9 %. GameStop shares rose 83% after hours trading on Wednesday.
GameStop has announced that Jim Bell, its chief finance officer, will be retiring on Tuesday, March 26.
Sources close to Bell’s story claim that Bell was not forced out of his job by Ryan Cohen. Ryan Cohen, the co-founder and CEO of chewy, invested last year in GameStop in order to help the company grow online.
Bloomberg News reported on Tuesday evening GameStop’s board had moved Bell to one side in order for it to complete its turnaround quicker, according sources who are familiar.
GameStop said on Tuesday its CFO will resign; stock up 80%+ after hours
Cohen’s January appointment as a GameStop board member was instrumental in driving the stock, which had been heavily traded, up in January. This led to a massive short squeeze at GameStop which caused retail trading mania and eventually drew the attention of Congress.
Jefferies equity analyst Stephanie Wissink told clients that although activist settlements sometimes result in changes of leadership, Mr. Bell’s exit from Jefferies was mutual and non-immediate. This implies that there were no disagreements between the board and company. “We believe that Mr. Bell deserves recognition for his actions in protecting GME Equity during the final stages, when hardware sales were down sharply.
Jefferies indicated that GameStop will likely look for a replacement CFO with a tech background, as GameStop is primarily focused on ecommerce growth.
Reddit also traded in a few trades after hours trading on Wednesday. AMC shares surged 22% and Koss rose 57%.