GameStop's Share Price Jumps By 80% After Holiday Sales And Board Changes
The video game retailer is seeing a major turnaround in its share price following news about its board of directors and holiday sales.
Investors and analysts are apparently feeling more confident about GameStop's future, as the company's share price rallied on the stock market this week after the retailer announced its holiday sales report and appointed three new members to its board of directors.
As you can see in the chart below, GameStop's share price is surging--up by more than 80% at one point on Wednesday--to reach around $36 per share. That's up dramatically from the end of 2019 when the company was trading at about half of that.
GameStop stock is up over 80% today.— Dom (@DomsPlaying) January 13, 2021
Ended last year at under 19 bucks. Now trading intra-day around $36.
Mainly due to a board refresh, despite mixed holidays sales.
Still, I'm hesitant on underlying fundamentals & direction. Reads like temporary optimism to me. pic.twitter.com/sLjFmzQOOp
The share price increase comes just days after GameStop announced sales of $1.77 billion for the nine-week holiday period, a modest decrease of 3 percent. However, comparable store sales rose by 4.8% and digital sales at GameStop surged by more than 300 percent.
The other piece of news that may have impacted GameStop's share price is that the retailer added three more executives to its board of directors to help shape the company's future. Among these is Ryan Cohen, the outspoken pet food industry billionaire who previously called on GameStop to make a series of significant changes to help turn the ship around.
One of GameStop's larger recent partnerships was with Microsoft. GameStop will get a share of digital sales from Xbox systems it sold to players, helping to alleviate the damage it would see to overall game sales as customers opt for digital versions.
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