Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • TRADE
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • TRADE
Crypto Flexs
Home»EXCHANGE NEWS»GameStop CEO buys new shares from company cash balance, GME stock rises 10%
EXCHANGE NEWS

GameStop CEO buys new shares from company cash balance, GME stock rises 10%

By Crypto FlexsDecember 8, 20233 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
GameStop CEO buys new shares from company cash balance, GME stock rises 10%
Share
Facebook Twitter LinkedIn Pinterest Email

GameStop gives its CEO complete control to purchase shares from the company’s cash book, but analysts have raised serious red flags about this.

Gaming retailer GameStop Corp (NYSE: GME) is changing its approach and allowing CEO and Chairman Ryan Cohen to take more control during these difficult times. This includes the ability to purchase new shares using the company’s cash.

In its quarterly report released Wednesday evening, GameStop disclosed two revisions to the company’s investment strategy. The first is that the company’s cash can be used to acquire stock rather than short-term debt. The second is that Cohen is responsible for overseeing these investments. Official submission notes:

“Mr. Cohen directs the Company’s investment activities in the public and private markets in accordance with the authority granted to him by the Board of Directors. Depending on particular market conditions and various risk factors, Mr. Cohen may, from time to time, invest in the Company in his personal capacity or through affiliated investment vehicles. “You can invest in the same companies.”

It further states that these investments synchronize the Company’s interests with those of its affiliates by exposing Mr. Cohen’s personal resources to risks in a manner closely similar to that to which the Company is exposed in connection with investment decisions made on Mr. Cohen’s behalf.

The company decided not to hold quarterly conference calls with Wall Street analysts. Wedbush’s Michael Pachter criticized the decision, calling it “dry” and “alarming”. Investors have a variety of investment options to choose from, making GameStop’s role as a mutual fund redundant. Michael Pachter suggested that if GameStop truly has faith in the value of its stock, it should use its excess cash to buy back shares.

Is a GameStop turnaround possible?

The revision coincides with Cohen’s struggling efforts to revitalize GameStop. For the quarter ended Oct. 28, the company reported net sales of $1.08 billion, down 9% year-over-year and down 25% from the same period in 2019. Net loss is lower than before. This was primarily the result of aggressive cost-cutting measures, including the closure of European stores.

Chewy co-founder Cohen, who bought GameStop stock in 2020 and joined the board in 2021 amid a surge in WallStreetBets meme trading, has aimed to use his e-commerce expertise to modernize the traditional video game retailer. However, there was no specific transition plan and replacement of executives was raised as an issue. Last June, CEO Matthew Furlong was fired, followed by the CFO’s resignation. Cohen assumed the CEO role in September.

GameStop’s stock closed Wednesday at $14.84 per share, reflecting a decline of more than 80% from its meme trading peak in January 2021. The stock rose 10% on Thursday.

Cohen’s profile as a prominent investor among retail traders extends beyond GameStop, where he has been prominently involved in trading activity involving Bed Bath & Beyond, a retailer that filed for bankruptcy protection last April. Cohen’s RC Ventures remains GameStop’s largest shareholder, holding a 12% stake in the company, according to FactSet.

next

Business News, Market News, News, Stocks, Wall Street

thank you!

You have successfully joined our subscriber list.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Bitcoin prices return to green -building exercise for more profits

June 26, 2025

Dogecoin (DOGE) after collision

June 23, 2025

Litecoin Key Support in Focus Price Eye Brake Out Determination

June 20, 2025
Add A Comment

Comments are closed.

Recent Posts

Checkpoint #4: Berlinterop | Ether Leeum Foundation Blog

June 28, 2025

TRON Price Propects USDT supply exceeded $ 80 billion

June 28, 2025

Stablecoin startups surpass 2021 venture capital peaks as institutional money spills.

June 28, 2025

No Altcoin Season 2025 ? Why Bitcoin Dominance Is Holding Strong In The Crypto Market

June 28, 2025

Why It Matters For Every Crypto Investor

June 27, 2025

Why It Matters For Every Crypto Investor

June 27, 2025

Safe smart account audit summary

June 27, 2025

CARV’s New Roadmap Signals Next Wave Of Web3 AI

June 27, 2025

CARV’s New Roadmap Signals Next Wave Of Web3 AI

June 27, 2025

Bybit Expands Global Reach With Credit Card Crypto Purchases In 25+ Currencies And Cashback Rewards

June 27, 2025

BYDFi Joins Seoul Meta Week 2025, Advancing Web3 Vision And South Korea Strategy

June 27, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

Checkpoint #4: Berlinterop | Ether Leeum Foundation Blog

June 28, 2025

TRON Price Propects USDT supply exceeded $ 80 billion

June 28, 2025

Stablecoin startups surpass 2021 venture capital peaks as institutional money spills.

June 28, 2025
Most Popular

SpinCoin: The Next Big Thing in Cryptocurrency – Find out why everyone is talking about it! – DeFi information

February 23, 2024

Evrloot Launches Free-to-Play RPG Campaign on Polkadot’s Moonbeam Chain

December 5, 2024

Take a look at the future of the NFT market

April 2, 2024
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.