Editor’s note: This article was updated on March 15 to correct the timeline of Reggie Fils-Aimes’ departure from the board of directors and his commentary on GameStop.
GameStop (NYSE:GME) stock fell more than 15% today ahead of the company’s earnings call this week. Add in some surprise commentary from one of GameStop’s former directors, and investors are keeping a close eye on GME.
So what’s going on with GameStop lately?
Over the weekend, the former face of Nintendo America, Reggie Fils-Aime, shared insight on why he stepped down from GameStop’s leadership. Indeed, Fils-Aime departed the company’s board in 2021, citing disagreement between leaders. This came just a year after he first joined GameStop.
Fils-Aime elaborated on his conflicts with GameStop leadership in an interview with Bloomberg.
“There has not been an articulated strategy. Leadership says we don’t want to articulate our strategy because they don’t want it to be stolen. To me, that was not acceptable.”
This mirrors a statement from Chairman Ryan Cohen last summer, in which he emphasized to investors the secrecy of the company’s plan. “You won’t find us talking a big game, making a bunch of lofty promises, or telegraphing our strategy to the competition,” Cohen said at the time.
GME Stock Continues to Tumble From Meme-Induced Highs
GameStop was one of the biggest winners of last year’s meme stock craze that saw a number of forgotten favorites skyrocket into relevancy alongside their share prices. Indeed, GameStop continues to fall from its 52-week high above $340.
However, as the share price falls, Cohen has taken steps to transition the company into an e-commerce business. Although the commentary from Fils-Aime appears to have hit shares today, another big test will come on Thursday when GameStop reports earnings. Investors should pay close attention to see what strategy Cohen shares.
On the date of publication, Shrey Dua did not hold (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.
