GameStop Shares Jump 40%

REUTERS/Shannon Stapleton
REUTERS/Shannon Stapleton

Shares of GameStop rose more than 40 percent on Monday—on real news about actual changes that could improve the business of the company.

The company said that it had tapped Chewy.com co-founder Ryan Cohen to head up a new board committee to oversee GameStop’s shift to digital sales.

Board members Alan Attal and Kurt Wolf, the activist manager of GameStop shareholder Hestia Capital Management, are also on the transformation committee.

The company also said it has hired two executives to lead the Company’s customer care and e-commerce fulfillment functions.

The changes bear a remarkable resemblance to the transformation’s envisioned by the denizens of Reddit’s WallStreetBet’s board, including Keith Gill (also known as Roaring Kitty).

Cohen helped spark a rally after he bought a large stake in the company and later urged its board to better embrace digital offerings. Cohen, along with former Chewy executives Attal and Jim Grube, joined the board last year. Their experience in successfully competing with Amazon is seen as giving credibility to GameStop’s digital transformation.

Shares jumped by around $55 on Friday to around $194.

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