With a roster of new executives on deck, online game retailer GameStop (GME) is gearing up for a turnaround. But for traders, that new course is as but unclear.
Shares of GameStop sank by greater than 22% intraday on Thursday, pacing towards their worst day since March even after the corporate reported first-quarter outcomes that topped estimates. Sales grew by a better-than-expected 25% to $1.28 billion, whereas adjusted losses narrowed to 45 cents per share, in comparison with losses of $1.61 per share throughout the identical interval final yr.
The launch coincided with the corporate’s bulletins that it appointed a brand new chief government officer and chief monetary officer, deliberate to promote extra shares and was being investigated by the U.S. Security and Exchange Commission over buying and selling exercise. Earlier Wednesday, GameStop shareholders additionally voted Ryan Cohen, co-founder of the e-commerce platform Chewy (CHWY), as chairman of the board.
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