GameStop “invests in growth,” appoints Amazon executives as CEO and CFO

Source: Ars Technica

GameStop is a Grapevine, Texas-based video game and entertainment software retail company that is known for operating thousands of retail stores around the globe. Recently, the company has been making some name among the popular meme stocks, surprising Wall Street with its first-quarter revenue.

For what its known, GameStop Corp. actually surprised Wall Street with its overall first-quarter revenue and exceeded its expectations with a smaller than expected quarterly loss, as mentioned in a report by Market Watch. Following the results, the videogame retailer has decided to sell more stocks in the future to take full advantage of its 1,600% stock profits in 2021 alone.

Other than this, the market is currently at a cut-throat competition phase and it has become very important to build and maintain your individuality in the marketspace. There is no option left but growth if you need to survive in the gaming and technology industry. Following these footsteps, GameStop Corp. has also recently appointed two Amazon executives for key managerial roles in the company.

Matt Furlong has been appointed as the Chief Executive Officer of the video game company while Mike Recupero has been appointed as the Chief Financial Officer of the company. According to reports, this advancement took place soon after GameStop voted private equity investor, Ryan Cohen as the chairman of its board.

As mentioned, growth is the only way to success considering the market competition and GameStop thinks on similar patterns as well. The company announced in a statement that these fresh recruitments reflect the refreshed board’s focus on building a successful technology company and is investing in growth in order to achieve its goals.

GameStop sales have recently been going up by approximately 25%, as calculated by the company. 25% of the company’s sales amounts to USD 1.28 billion and with this figure, GameStop has announced that its current quarter sales have been reflecting momentum as its May 2021 sales were by up 27% as compared to May sales from 2020.

Although it wasn’t like this a quarter ago, the company mentioned that it was facing tremendous losses worth USD 66.8 million in the first fiscal quarter as compared to the net loss of USD 165.7 million in the fiscal quarter of last year, as mentioned in a report by Market Watch. The report further states that for one-time items, the company lost over USD 29.4 million which amounts separately amounts to 45 cents per share.

On Wednesday, the stock market ended its regular trading session with an increase of 0.9% which lowered by 10% in the extended session on the same day.

Furthermore, GameStop also plans to sell up to 5 million shares in the ‘at-the-market’ offerings and thus, shall also file its plans with the securities regulators in the coming months of 2021.