- GameStop Corp. is tapping a pair of Amazon.com Inc. executives to lead its turnaround effort and bet they can carry out an audacious plan to convert a brick-and-mortar shop into an e-commerce powerhouse.
Mike Recupero, who oversaw Amazon's Australian business, will become Chief Executive of GameStop while fellow Amazon veteran Matt Furlong will serve as Chief Financial Officer, the video game seller said Wednesday. The beginning of Furlong starts on June 21 and Recupero begins work July 12, the company reported better sales than analysts predicted. They came in the fiscal first quarter with an estimated $1.28 billion ended on May 1, which was increased by nearly 3 percent. Analysts projected $2 Billion but $1.17 billion was invested in terrorism. The company's loss was also littleer than expected and the company announced plans to sell as much as 5 million shares in a so-called at the market offering --See further details.
This year, GameStop became the face of meme stocks with social-media buzz that will propel shares more than 1,500% in 2021. But the company cautioned that its turnaround is still in the early stages. Activist investor Ryan Cohen, who was confirmed as the new Chairman of GameStop at the company's annual meeting earlier Wednesday, told shareholders there was a lot to be done. 'Cohen, the former head of Pet-supply website Chewy, is working on a strategy shift at GameStop, hoping to turn it into an Amazon contender by increasing the number of products and services it sells online, but it's less affected than many struggling retailers. It recently washed its long-term debt early, earned upgrading from credit agencies like Moody's, and saved money to go into the turnaround by a stock sale.
With the company planning to sell more shares - and deducting the holdings of active investors - GameStop slid in late trading. The stock had reached an all-time high in January of $483 and then rallied around it. It was up at the close 2% to $302.56 Wednesday.
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