Investors re-put their trust in GameStop after the company issued a press release on Tuesday that Ryan Cohen, an activist investor and co-founder of the pet food online store Chewy.com, had become head of the company’s new strategy committee.
The committee, led by Cohen, will aim to transform GameStop from a mere network of brick-and-mortar stores to an online business that offers much more to video game enthusiasts than ever before. GameStop can thus start competing with Steam or the Epic Games Store.
–
–
GameStop has risen 140 percent in the past six days and traded for more than $ 300 apiece during Wednesday afternoon. But it still lags behind its record of January 28 this year, when the stock reached $ 483.
“Looks like a second wave of speculation has just begun,” Ipek Ozkardeskaya, a senior analyst at Swissquote, told Bloomberg about the latest stock of GameStop shares. But at the same time, she warned that the latest news from the company may not sufficiently justify the growth of shares.
“The risk remains huge. Interest in GameStop shares is driven by expected future profits, not real results, ”added the analyst.
