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Chewy founder Ryan Cohen - popular among "meme stock" traders -
stepped up to the executive chairman role on Wednesday, but the
company did not name a CEO to succeed former Amazon.com
executive Matt Furlong.
"It's hard to have an opinion with no earnings call,
little-to-no investor communication, and lack of consistent
strategic vision. One consistency remains, changes at the top,"
Jefferies analysts said in a note.
"Over the last 5 years, GameStop has had 5 CEOs and 3 CFOs."
Several analysts stopped covering the company after retail
traders on Reddit's wallstreetbets forum drove a massive surge
in the stock during the pandemic, going against hedge funds that
had bet on the death of GameStop's mostly brick-and-mortar
business as online stores dominated videogame sales.
When Cohen bought into the company nearly three years ago, one
of his main objectives was to pivot Gamestop toward a more
online-focused model to take on larger retailers such as Amazon.
But signs of progress have been scarce so far.
The company, which sells collectibles, videogames and consoles,
had reported a 10% drop in sales for the three months through
April - its fourth consecutive decline in quarterly revenue.
(Reporting by Akash Sriram in Bengaluru; Editing by Devika
Syamnath)
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