TOPLINE
GameStop Chair and Chewy cofounder Ryan Cohen disclosed he purchased more than $10 million in shares of the brick-and-mortar game-seller on Tuesday as the stock skyrocketed more than 30%—a disclosure that helped the so-called meme stock surge another 15% in after-hours trading.
In a separate filing, the entrepreneur disclosed his firm owns a total 9.1 million shares purchased for about $86.1 million, excluding brokerage commissions.
Shares of the brick-and-mortar retailer surged more than 15% in post-market trading following the disclosure, reaching $142.25 by about 7 p.m. ET, after skyrocketing nearly 31% on Tuesday; as of Tuesday evening, Cohen’s stake is worth more than $1.1 billion.
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Buoyed by the broader market, this week’s stock surge helped GameStop recover losses after the firm posted a worse-than-expected fourth-quarter loss of $147.5 million last week, compared to a profit of $80.5 million in the period one year prior.
A representative for Cohen did not immediately respond to Forbes‘ request for comment.
KEY BACKGROUND
Last January, Reddit traders famously declared GameStop their meme stock of choice as they bought up Wall Street’s most heavily shorted companies. The company was among the worst-hit brick-and-mortar retailers over the past decade as independent companies like Minecraft gobbled up market share, but its shares began to surge in 2020, when Cohen started buying up stock at about $6 and blasting management for “lack[ing] the mindset, resources and plan needed to [help GameStop] become a dominant sector player.” Cohen was tapped as the firm’s chair last April but has so far remained fairly mum about his turnaround plans.
SURPRISING FACT
After skyrocketing more than 800% last January, GameStop has continued to draw massive fanfare from retail investors, despite bouts of intense volatility. Shares are down about 59% since an all-time high set in June, but they’re up a staggering 3,000% over the past two years.
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