GameStop Corp. (NYSE: GME) shares surged yet again to start out the week, after the company announced that its board of directors would be forming a Strategic Planning and Capital Allocation Committee to identify initiatives that can further accelerate the company’s transformation.
Ryan Cohen, founder of Chewy.com, will lead the committee to guide GameStop’s transition to an e-commerce business. The committee also includes Alan Attal and Kurt Wolf.
The committee is looking to appoint a chief technology officer, to hire two executives to lead customer care and e-commerce fulfillment and to announce a chief financial officer succession plan.
The ultimate objective for the committee is to identify actions that can transform GameStop into a technology business and help create enduring value for stockholders. It is responsible for evaluating areas that include GameStop’s current operational objectives, capital structure and allocation priorities, digital capabilities, organizational footprint and personnel.
Excluding Monday’s move, GameStop had outperformed the broad markets, with the stock up about 631%. In the past 52 weeks, the stock was up closer to 3,378%.
The reason for this huge outperformance is largely due to the Reddit trade. The stock originally was pushed higher as a result of Reddit’s r/WallStreetBets community pouring into the stock and surrounding options, at the expense of Melvin Capital.
Although GameStop shares have pulled back from their peak in late January, they are starting to make another run, and it makes many investors wonder where the stock could go from here.
GameStop stock traded up 11% Monday morning, at $152.50 in a 52-week range of $2.57 to $483.00. The consensus price target is $13.44.