![]() As recently as last August, the largest video-game retail chain in the world had a stock value of less than $5 per share.īut in the second half of 2020, with big financial names like Cohen and Michael Burry buying up shares in the ailing retailer, things started looking up. Just over two years ago, in early 2019, GameStop's stock value fell off a cliff: It dropped from about $16 per share to under $4.Īnd it stayed in that range for just shy of two years.Įven in 2020, while the video-game business (including GameStop) had huge gains during coronavirus lockdowns, GameStop's stock price remained in the gutter. Courtesy of Ryan Cohen Chewy GameStop Olly Curtis/Future Publishing via Getty Images Reddit Samantha Lee/Insider At GameStop, of course, it's gaming.Īctivist investor Ryan Cohen, of RC Ventures, owns 12.9% of GameStop's shares. GameStop is currently amidst a "transformation" led by activist investor, board member, and former Chewy CEO Ryan Cohen.Īs the leader of a new committee at the company, Cohen is attempting to do for GameStop what he did with Chewy: take on and defeat Amazon in a specific category of ecommerce.Īt Chewy, it was pets. The filing acknowledges as much with a list of factors that are impacting its decision, including "capital needs and alternative sources and costs of capital available to us, market perceptions about us, and the then current trading price."Īny money the company made from those sales could be used "to fund the acceleration of our future transformation initiatives," the filing says. One major issue with GameStop selling its own stock during a bubble is, of course, perception: GameStop leadership knows the current stock value is massively inflated, and selling stock right now could look pretty bad. Read more: These are the kinds of charlatans who show up when Wall Street gets weird ![]() "Since January 2021," the filing says, in reference to when the stock bubble emerged, GameStop leadership has been "evaluating" whether it should "potentially sell shares."
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