Ryan Cohen, founder of Chewy, has been appointed as the new chief executive of GameStop.

Ryan Cohen, founder of Chewy, has been appointed as the new chief executive of GameStop.

GameStop has selected Chewy’s founder Ryan Cohen to lead the company as its CEO in an effort to revamp its struggling operations.

were criticized for their lack of digital strategy.

The billionaire, who is both the largest individual investor and chairman of the board, has been appointed to the video game retailer. This decision was made shortly after the company’s executives received backlash for their failure to implement a digital strategy. ousted

Matthew Furlong, the former CEO, was brought onto the retailer’s leadership team two years ago to lead its revitalization efforts.

GameStop, whose

The meme stock caused a lot of excitement. on Wall Street in 2021, has struggled with poor sales and executive turnover as video game streaming and digital game downloads eat at its profits. The mostly brick-and-mortar chain also faces competition from online retailers, such as Amazon. 

The statement confirmed that the billionaire will not be compensated for fulfilling the roles of president, CEO, and chairman for the company.

In 2021, the stock of GameStop experienced an increase of over 1,000% in just two weeks due to a group of individual investors with limited funds who were encouraged by a subreddit community known as WallStreetBets to strategically raise its value.

The spike in GameStop’s stock was accompanied by an increase in value for other struggling stocks, revealing the influence of a younger group of investors who use phone apps to trade and find it enjoyable. As GameStop’s price rose, individuals on social media expressed their view that joining the Reddit-driven rallies was an opportunity to challenge hedge funds.

The tale of GameStop’s meme stock is so fascinating that it has been made into a film entitled “Dumb Money.”

GameStop’s stock dropped by 1% during midday trading.

Reporting was provided by The Associated Press.

The Associated Press provided the reporting.

Source: cbsnews.com