Ryan Cohen has his space suit on and is ready to fuel up the rocket ship. Why? In just a few weeks, the Chewy (NYSE:CHWY) founder and activist investor could be chairman of GameStop (NYSE:GME). Investors seem to like this news, sending GME stock higher in pre-market trading.
So what do you need to know now?
In a Thursday morning press release, GameStop shared that it would be holding its annual shareholder meeting on June 9. There, it plans to further shake up its board of directors, including through electing Cohen as chairman of the board of directors. Cohen and five other individuals are up for election at that meeting.
So who are those other people? Investors may recognize the names of Alan Attal and Jim Grube, the two directors appointed alongside Cohen in January 2021. George Sherman, a current board member is up for election, as are new candidates Larry Cheng and Yang Xu. Cheng comes from Chewy, like many of the other board directors. Xu hails from Kraft Heinz (NASDAQ:KHC), although she has previously held a variety of executive positions, including at General Electric (NYSE:GE).
The bottom line for investors is that turnaround hopes for GameStop rest with Cohen. From activist investor to board member to chairman, Cohen is flexing his muscles. With all this in mind, GME stock is starting to climb on Thursday.
Ryan Cohen and GME Stock
So what else do you need to know now? Perhaps the most important takeaway is that beyond the r/WallStreetBets hype, investors are starting to see some change at GameStop. First, Cohen, Attal and Grube landed their board seats. Then CFO Jim Bell got kicked out, as did a handful of board members. GameStop has brought in new executives like Matt Francis to serve as chief technology officer and Jenna Owens to serve as chief operating office. The company also launched a strategic committee, and focused its quarterly earnings call on big plans for the future.
Although GameStop has a long way to go (as seen in that call), the company is looking to the future. It shared that it hopes to lean into e-commerce and tech, shifting away from struggling brick-and-mortar stores. With Cohen about to claim a new title, investors should pay attention.
You can read more about the path to $500 for GME stock here.
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.