Shares of video game retailer GameStop (NYSE:GME) were rallying in the pre-market Monday after the company announced that shareholder Ryan Cohen will lead its shift towards e-commerce.
GameStop shares were up as much as 12% before the opening bell Monday as investors cheered the news that Cohen will lead GameStop’s e-commerce and future growth strategy.
Last week, Cohen, who is a major shareholder of GameStop and the founder of online pet store Chewy.com (NYSE:CHWY), posted a cryptic tweet of an ice-cream cone, which analysts have speculated is code for GameStop’s recent stock rally.
Cohen’s RC Ventures activist firm reached a settlement with GameStop in January, giving him two seats on the company’s Board of Directors. He had urged the videogame retailer to review its business and focus on digital sales by moving away from its traditional brick-and-mortar model.
GameStop, which has become one of the most popular "meme stocks" has seen its share price rally sharply several times this year as investors on the Reddit forum "WallStreetBets" have targeted the company.
At one point in January, GameStop’s share price rose from under $20 a share to a high of $483 per share. The stock finished trading last Friday at $137.74.
