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GameStop (GME) soars 67% on sales update, new board members
Electronics retailer GameStop (GME) made waves on the NYSE in midweek as it skyrocketed 67% on optimism about its festive sales and the arrival of three new executives.
GameStop (GME) shares soared on Wednesday, climbing 67% on news that the video game retailer enjoyed healthy sales over the festive period and is bringing in three new highly regarded board members.
In a statement, GameStop said that Alan Attal, Jim Grube and Ryan Cohen will join the board, after an agreement was made with RC Ventures LLC.
The Dallas-based company said that the new executives will provide “deep expertise” on a range of core business functions, including e-commerce and strategic planning.
Telsey analyst Joseph Feldman believes that the new arrivals will enable GameStop to forge a new path as a “digitally focused retailer”.
GameStop also encouraged investors after stating that its online sales for the last 12 months had surged past its own previous internal target of $1bn to more than $1.35bn.
Comparable-store sales, which have been hit by the pandemic during the last nine months, also climbed 4.8%.
GameStop benefited from the hype and demand for next-generation consoles, following the launch of the PlayStation 5 and Xbox Series X/S in late 2020.
The firm said that “these products will drive sales well into 2021 as console availability from our suppliers improves later in the year”.
The good news set the scene for a considerable GameStop share rally on Wednesday.
Shares rose steadily after the New York Stock Exchange opened and peaked at nearer to $40, before settling back down to $33.25 at just before 1pm ET.
This translated to share gains of 67.92% for the session.
Analyst coverage for GameStop is not extensive, but the company currently has a consensus rating at hold, with four hold, two sell and one buy ratings.
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