GameStop shares soar greater than 90% within the late afternoon

A GameStop store is pictured in New York on January 29, 2021.

Carlo AllegriI | Reuters

GameStop’s shares rose more than 90% in afternoon trading Wednesday as investors flocked to the brick and mortar retailer during a C-suite restructuring.

GameStop announced on Wednesday that its CFO Jim Bell will step down on March 26th.

“Mr. Bell’s resignation was not due to a disagreement with the company over its business, policy or practice, including its accounting policies and practices,” the company said in a filing with the Securities and Exchange Commission.

Sources familiar with the matter told Business Insider that Bell was leaving, not voluntarily, but by Ryan Cohen, co-founder of Chewy, who invested in GameStop last year to help the company accelerate its online push.

Cohen’s appointment to GameStop’s board of directors helped propel the sharply shortened stock higher in January, leading to the epic short squeeze in GameStop that caused Congress mania and retail attention.

“We recognize that leadership changes often follow activist settlements and that Mr. Bell’s exit was mutual rather than immediate and does not suggest any disagreement with the company / board of directors,” Jefferies’ equity analyst Stephanie Wissink told clients. “We believe Mr. Bell deserves credit for a number of measures that protected GME equity in the late stages of the latest hardware cycle when sales fell sharply.”

Jefferies added that compared to its retail background, GameStop is likely to be looking for a technology to replace CFO.

Subscribe to CNBC PRO for exclusive insights and analysis as well as live business day programs from around the world.

Comments are closed.