Billionaire Ryan Cohen, the bold investor who famously bet on GameStop and became a hero to meme stock traders, has taken over as Executive Chairman of the company following the ousting of its CEO and posting of a larger-than-expected quarterly loss. Despite Cohen’s track record of success with the online pet products retailer Chewy, some analysts remain skeptical about his ability to turn GameStop around. He will now have control over capital allocation, investments, acquisitions, and holdings oversight. The company’s top lawyer, Mark Robinson, has been named general manager and will report to Cohen.
In after-hours trading, GameStop’s stock price plunged by over 20%, continuing the roller-coaster ride of retail investor activity that started in early 2021. Meanwhile, industry analysts and investors are questioning Cohen’s ability to revive other retail companies, given his mixed track record of success at Bed Bath & Beyond and Nordstrom. The revolving door of executives at GameStop has also drawn concern, as many Cohen-hired executives have not lasted long.
While Cohen’s activism has expanded with bets on Alibaba, Nordstrom, and Bed Bath & Beyond, he is now being likened to Elon Musk running Twitter. Great Hill Capital LLC’s Chairman Thomas Hayes stated that, while meme traders love Cohen, his appointment as Executive Chairman was a hail mary pass for investors to count on the company’s revival. GameStop’s total net sales for the past quarter dipped 10%, making it the fourth consecutive decline in quarterly revenue.
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Basant Kasayap is an entertainment aficionado who delves into the glitz and glamour of the entertainment industry. From Hollywood to Bollywood to regional cinema, she offers readers an insider’s perspective on the world of movies, music, and pop culture.
