GameStop, the famous video game store in the United States, is still going through a bad time. Now the company made the decision to fire its CEO and, although they have already named his successor, the value of its shares plummeted.
As CNBC account, GameStop made the decision to remove the CEO position from Matthew Furlong, who took the reins of the company in June 2021. As part of this change, the company has named Ryan Cohen as its new CEO and will be in charge of capital allocation and management of the company.
Why did the company make this decision?
At the moment, GameStop He has not explained why he decided to fire Furlong. That said, it’s a surprising move, coming just months after GameStop posted its first quarter of profit.
This news came just the day that GameStop presented its results for the current fiscal year. There he pointed out that in the quarter that ended on April 29 they recorded income of $1.24 MMDD, which represents a drop of $1.38 MMDD compared to the same period last year. With this, it posted losses of $50.5 million or $0.17 USD per share.
These negative results impacted GameStop’s stock value, which plummeted. Following the announcement of Furlong’s layoff, the shares fell 20% in extended-hours trading.