GameStop rallied Monday after the video game retailer announced its CEO succession plan as it tries to pivot to e-commerce following a historic short squeeze.
Shares of GameStop jumped more than 6% to close at $164.37.
The company said CEO George Sherman will step down by July 31. It said the board is leading a search to identify CEO candidates who can accelerate the next phase of the company’s transformation.
While GameStop shares are well below the record highs of $483 reached in January, the stock is still up a whopping 770% for 2021. To take advantage of the massive Reddit-fueled rally, GameStop announced a $1 billion stock sale earlier this month. It plans to use the sale’s proceeds to aid its transition into e-commerce, which is led by activist investor and Chewy co-founder Ryan Cohen.
The company also hired former Amazon and Google executive Jenna Owens as its new chief operating officer.
“GameStop’s next CEO and CFO are likely to come from the tech industry, as with the other recent senior hires, and would require a wide range of strategic and operational experience, given GameStop’s complex business model, including ~4,800 global stores, digital, used games, new software and hardware, and collectibles,” Telsey Advisory Group analyst Joseph Feldman wrote in a note.