- The stock price of GameStop Corp. (NYSE: GME) increased by 103.94%. This is why it happened.
The stock price of GameStop Corp. (NYSE: GME) increased by 103.94% as it went from a previous close of $44.97 to $91.71 and the price hit $180.26 in after-hours trading. Investors appear to be responding to an executive shuffle along with other factors such as a bullish position by Keith Gill – who was one of the masterminds behind the r/WallStreetBets short squeeze initiative that went viral on Reddit.
GameStop had announced yesterday that its chief financial officer Jim Bell is going to resign on March 26. In an SEC filing, GameStop said that Bell’s resignation was not due to any disagreement with the company. But sources with Business Insider tell a different story.
Business Insider’s sources said that Bell was pushed out by the board due to a plan being pushed by activist investor and Chewy co-founder Ryan Cohen. Cohen invested in GameStop last year with an intention to help the company push for online sales as its physical stores have been struggling, especially during the pandemic.
GameStop said it has initiated a search for a permanent Chief Financial Officer “with the capabilities and qualifications to help accelerate GameStop’s transformation.” And an executive search firm has been retained to support the process. Both internal and external candidates will be evaluated.
“If a permanent replacement is not in place at the time of Mr. Bell’s departure, GameStop intends to appoint Diana Jajeh, who is currently Senior Vice President and Chief Accounting Officer, to the role of interim Chief Financial Officer. Ms. Jajeh has more than two decades of experience operating as an auditor, comptroller, and corporate finance executive. After beginning her career at PricewaterhouseCoopers, she subsequently held senior roles at companies such as Visa and e.l.f. Cosmetics,” wrote GameStop in a statement.
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