According to the latest sources, GameStop shares are on the rise again, thanks to the favor of Redditors who are vehemently shorting the stocks since Wednesday.
Reports suggest that GameStop shares made a massive jump this Thursday, February 25th. There seems to be a resurgence of Redditors’ interest in the brick-and-mortar gaming retailer. The stock was up by 50% for the last session but faced several halts on the way. Investors have now piled on the stock pushing the value up by 103.9% before the last trading halt. This resurgence occurred after news of the ousting of the CFO of GameStop, Jim Bell, broke out.
The company announced in a statement this Tuesday, February 23rd, that Jim Bell, the Chief Financial Officer will leave office on the 26th of March. He will be replaced by Ryan Cohen, a long-time GameStop investor and the co-founder of the pet food company ‘Chewy’. Board members of the company announced that the transition will take place online to accelerate the process amidst the pandemic.
Cryptic Tweet From New CFO As GameStop Shares Resurge
The company as well as Cohen has remained silent during the massive surge of GameStop shares this Wednesday. However, Cohen posted a cryptic tweet with the image of an ice cream cone on the same day.
An analyst at Jefferies, namely Stephanie Wissink, mentioned in a note that the CFO transition might have been influenced by talks with an activist investor last month. He said, “leadership changes often follow activist settlements,” and that the exit of Jim Bell was one without disagreements from both the parties.
Since his joining, Jim Bell has been managing the role of a CFO to the best of his abilities, said Wissink. He further noted his contribution during the mayhem surrounding GameStop shares that continued for a majority period of the past month.