Ryan Cohen scoops up GameStop stock worth $10 million, shares rise
Reuters
Published Jun 14, 2023 00:09
Updated Jun 14, 2023 03:45
(Reuters) - Ryan Cohen has bought GameStop (NYSE:GME) stock worth $10 million, a securities filing showed on Tuesday, in a sign that the activist investor was trying to boost shareholder morale after the company lost its fifth CEO in five years last week.
Shares of the company jumped 7.7% in early trading. They are down nearly 80% from their peak of $120.75 hit during the meme-stock frenzy of 2021.
The company's board last week ousted Matt Furlong, a former Amazon.com (NASDAQ:AMZN) executive who was handpicked to lead the largely brick-and-mortar operations company's online expansion, fanning concerns about the videogame retailer's ailing business.
Furlong's exit came as the company struggles to turn a corner after it posted a bigger-than-expected loss for the latest three months and missed revenue expectations, with net sales falling for a fourth straight quarter last week.
Cohen - who owns about 12% of the company through his firm, RC Ventures - pushed the company to pursue a strategic review of its business in 2020 and was elected chairman in June 2021.
Cohen promised investors a digital pivot, with a focus on e-commerce, but the company has struggled to realize the goal.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.