Investors in meme stock GameStop (NYSE:GME) have been on quite the ride as of late. Indeed, shares of GameStop have an absolutely insane 52-week range of $3.92-$483. At a price of around $180 per share at the time of writing, this stock has been trading in a relatively narrow range lately. That is, as far as GameStop is concerned.
Today, shares of GME stock are trading down 3%. That said, these kinds of moves are relatively normal for meme stocks. Investors looking for quick wins have opted to consider shares of these meme stocks in recent months. Given GameStop’s relatively high short interest level around 15%, the view that this is a stock that could squeeze continues to drive interest in GME stock.
However, investors now have another catalyst to rely on. Let’s dive into what GameStop shareholders are looking at today.
Can GME Stock Surge on Digitization Plans?
GameStop Chairman and largest shareholder Ryan Cohen has become a key talking point for investors in GME stock. Indeed, the co-founder and former CEO of Chewy (NYSE:CHWY) has announced plans to revive the faltering video game retailer.
Today, reports have circulated that Ryan Cohen is proposing a two-part plan.
The first piece of the plan Mr. Cohen wants to implement is a store revival. The GameStop chairman wants to enhance the customer experience, improving how employees can serve customers. As an experience-based business, such a move will hopefully result in surging sales. The GameStop executive has reportedly visited a number of locations to see firsthand how the customer experience can be improved.
The second piece of Mr. Cohen’s plan involves the shift toward e-commerce. Given the success Cohen has had with Chewy, this move is what many investors are banking on. Given the fact that GameStop has closed more than 800 stores over the past 15 months, there’s increased pressure on finding another channel to generate revenue. Shifting to e-commerce could resolve this revenue decline.
Today, this news appears to be doing little to help GameStop’s stock price. Indeed, many investors had already priced in these catalysts. That said, long-term GME shareholders may be comforted knowing there’s work going on behind the scenes.
On the date of publication, Chris MacDonald 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.