News today from Reddit favorite GameStop (NYSE:GME) already has GME stock climbing. It appears that one big catalyst is coming on April 5, and that it is right in line with the Ryan Cohen turnaround plan. So what do you need to know now?
As a quick refresher, Cohen is the Chewy (NYSE:CHWY) founder who became an activist investor and then a board member. His guidance helped spark the r/WallStreetBets frenzy, as a short squeeze rally combined with real turnaround dreams. In recent weeks, Cohen has sparked similar buying interest after becoming the head of a new strategic committee and helping push out eight board members.
Now, it seems Cohen is at it again.
On Tuesday morning, GameStop announced that it had hired a chief growth office. Elliott Wilke will fill the position, leaving a seven-year career at Amazon (NASDAQ:AMZN). There he held leadership roles that touched Amazon Fresh, Prime Pantry and Worldwide Private Brands. Before that, he also held brand manager and marketing roles at Procter & Gamble (NYSE:PG).
Importantly for GME stock fans, Wilke starts his tenure at GameStop on April 5. Once there, his job will be to focus on growth strategies and marketing, including through expanding the reach of Power Up Rewards and Game Informer. The company also says he will help expand customer insights and other marketing metrics.
Additionally, the Cohen era is bringing two other new executives. Andrea Wolfe is coming from Chewy to serve as the vice president of brand development. Tom Petersen, also from Chewy, will now serve as vice president of merchandising.
GME Stock and the Ryan Cohen Rocket Ship
So what else do investors need to know about this news? Bulls are taking it as good news, with GME stock up nearly 6% in pre-market trading following the announcement.
Importantly, r/WallStreetBets is betting that Cohen can make his bold turnaround plans (like making GameStop an Amazon rival) into a reality. His leadership of the new strategic committee affirmed those hopes, as did the exiting of eight board members. News in the quarterly conference call that GameStop is targeting tech and e-commerce initiatives also helped. It seems that for Cohen, much of the first phase involves getting the right people into leadership positions. With another steal from Amazon starting on April 5, investors are paying close attention.
Want a bonus GameStop story? The news today further fuels r/WallStreetBets hype. It seems the Archegos Capital Management fallout did nothing but validate the subreddit’s underdog narrative.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.