The GameStop Corp (NYSE: GME) share price has risen 21.7% this year and recently crashed after firing its fifth CEO in five years. The move to sack the CEO, who had been handpicked to turn around the ailing business, shocked investors, triggering a 19% decline in the GME share price on Thursday.
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The GME stock has since mounted a recovery. Still, it is yet to rally back to its recent higher above $26 as investors and analysts express dissatisfaction with how the company is run. Matt Furlong's exit saw Ryan Cohen's appointment as the company’s executive chairman.
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Many analysts have expressed disappointment in how Ryan Cohen operates, including his lack of honesty with investors. Cohen has been accused of not updating investors on his strategy with the company, instead choosing to remain silent.
Gamestop’s fortunes have worsened since it became a meme stock favourite among retail traders in 2020. Since then, the video game retailer has raised money, saying it would use the funds to expand and diversify its business, but the company is yet to launch any new businesses.
Some analysts are highly critical of Ryan Cohen, pointing out that he could not affect much change at Bed Bath & Beyond, which is currently undergoing bankruptcy. Cohen could also not drive any real change at Nordstrom, where the management team is quite proficient.
Ryan Cohen has yet to give the average customer any reason to enter into any of its 4,000 retail locations in the USA, and some have even suggested that the company could see some success selling groceries.
Gamestop incurred a loss of almost $700 million in 2021 and 2022 while reporting a loss of $50.5 million in the most recent quarter. There is no clear path through which the company can become profitable unless it radically changes its business and operations.
Meanwhile, there is little to no hope of changes coming at the video game retailer, given that Ryan Cohen has been with the company since its meme-stock hype in 2020, yet he has yet to do much to steer the company in a different direction.
*This is not investment advice.
Gamestop share price.
The Gamestop share price has risen by 21.67% this year as investors remain confident in its prospects.
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