GameStop plunges 22% after company fires its CEO and names meme-stock activist Ryan Cohen as executive chairman
Cohen has advocated for GameStop toShortly after Wednesday's announcement that Cohen had been named executive chairman of GameStop,In addition to the executive shakeup, GameStop announced its fiscal first-quarter revenue of $1.237 billion, which represented a year-over-year decline of 10%. The company said it generated a net loss of $50.5 million, and that it's cash on hand totaled $1.31 billion.
The company shied away from hosting a conference call to talk through its earnings results given the firing of its CEO. No new CEO was named in the company's press release. Wedbush managing director Michael Pachter was unimpressed with the shakeup as GameStop, with the analyst reiterating his"Sell" rating on the stock and lowering his price target to $6.20 per share from $6.50, representing potential downside of 69% from current levels.
"We remain convinced that GameStop is doomed, with declining physical software sales and a shift of sales to subscription services and digital downloads sealing its fate... We think that the lack of clear direction and the callous termination of Mr. Furlong all but ensures that Mr. Cohen will have difficulty attracting a qualified replacement," Pachter said in
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