Today is a huge day in the GameStop (NYSE:GME) saga. In the midst of an already rowdy week, the company is changing leadership across the board. GME stock is booming already on top of some pleasant earnings surprises, but can its new CEO catalyze more gains?
GameStop saw both its annual shareholder meeting and its Q1 earnings report today. The company dazzled investors by outperforming expectations. Revenue stands at $1.28 billion, better than $1.17 billion predictions. Moreover, the company’s losses per share were far less than analysts were bracing for, reporting a loss of 45 cents against 71-cent predictions.
Investors have even more reason to be excited for GameStop today as well. Ryan Cohen is officially taking over as chairman of the company, and is getting the gears turning on the company’s turnaround. Joining Cohen today are two new adds. Mike Recupero, a long-time Amazon (NASDAQ:AMZN) CFO, was appointed to the CFO position at GameStop.
Joining Recupero will be Matt Furlong, the newly named GameStop CEO. Another seasoned Amazon veteran, Furlong was at the helm of the company’s Australian expansion.
GME Stock Eyeing Big Gains as GameStop Grows Its Board
It’s obvious why investors are bullish on these additions. Amazon is the premier e-commerce giant, and the two executives share a quarter-century experience at the company. They also played a huge part in the retailer’s worldwide expansion and product growth.
Cohen’s turnaround plan might be entirely fleshed out for all we know, but it could also be just as hazy behind closed doors as it looks to investors. But either way, Furlong and Recupero are bringing to the board some crucially needed e-commerce experience. The news of Furlong’s hiring comes as a pleasant surprise to investors. Previous CEO George Sherman would be stepping down by July 31, but the date was only tentative, depending on whether or not the company could find a replacement sooner.
The two additions are not the only Amazon expats joining the committee. Jenna Owens, Matt Francis, and Elliott Wilke, all previous Amazon execs, went to GameStop earlier in the year.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
