Shoppers are waiting for the GameStop store to open at the Tysons Corner Center in Tysons, Virginia, November 27, 2020.
Hannah McKay Reuters
GameStop gathered Monday after the brick-and-mortar video game retailer announced its succession plan as it seeks to focus on e-commerce after a historic brief suppression driven by Reddit earlier this year.
Shares of GameStop jumped more than 8% at the beginning of trading, open at about $ 1
The company said CEO George Sherman would step down on Monday, July 31, or earlier after the appointment of a successor. The board is conducting a search to identify CEO candidates with the capabilities and experience to accelerate the next phase of the company’s transformation, a GameStop statement said.
While GameStop shares hit a record high of $ 483 in January, shares are still rising an incredible 720% for 2021. To take advantage of the mass rally, GameStop announced a $ 1 billion share sale in early April, for to accelerate its transition to e-commerce, led by activist investor and board member Ryan Cohen, who co-founded Chewy.
The company has also hired former Amazon and Google CEO Jenna Owens as the new chief operating officer.
Some investors were also comforted by Keith Gill’s move on Friday to double their bet on GameStop, giving up millions of dollars in quick profits from options trading. Gill is perhaps the biggest influencer in the Reddit retail crowd.
The investor who obeys DeepF —— Value of Reddit and Roaring Kitty on YouTube, has exercised its 500 GameStop call options contracts as they expired on Friday, giving it another 50,000 shares on strike from just $ 12. If he had sold the options on Friday, he could have won more than $ 7 million from the bet.
On top of the exercise of these option contracts, Gill bought another 50,000 shares of GameStop, bringing its total investment to 200,000 shares worth more than $ 30 million.
Gill’s trading information is according to his Reddit posts, which appear to be photos of his investment account. The publications were not verified independently of CNBC.
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