By Dhirendra Tripathi
Investing.com - GameStop (NYSE:GME) shares soared again in premarket trade on Tuesday on fresh hopes for the company to reorient itself to online sales.
The stock trimmed its gains somewhat to trade up 10.4% from Monday's close at $214.80 by 7:40 AM ET (1240 GMT). The latest surge followed the company’s announcement it had set up a committee to spearhead transition to a digital life and reverse a long-term decline.
Ryan Cohen, a member of the company’s board and co-founder of online pet food retailer Chewy (NYSE:CHWY), will head the panel that a filing said will “identify initiatives that can further accelerate the company’s transformation”.
“The committee will continue to focus on identifying actions that can transform GameStop into a technology business and help create enduring value for stockholders. It is responsible for evaluating areas that include GameStop’s current operational objectives, capital structure and allocation priorities, digital capabilities, organizational footprint, and personnel,” the company release said.
The committee will also search for and appoint two senior executives – a chief technology officer and chief financial officer at the Nasdaq-listed firm.
GameStop attracted worldwide attention in January when a group of Reddit followers, ‘WallStreetBets’ plotted against hedge funds who were heavily short on the stock.
The Reddit-driven short-squeeze sent the stock as high as $482 last month, far above most analysts' price targets. The stock has since been actively traded with strong volumes and price volatility.