U.S. markets open in 5 hours 15 minutes
  • S&P Futures

    4,141.50
    -4.75 (-0.11%)
     
  • Dow Futures

    34,125.00
    -58.00 (-0.17%)
     
  • Nasdaq Futures

    13,318.75
    -27.25 (-0.20%)
     
  • Russell 2000 Futures

    2,195.80
    -7.50 (-0.34%)
     
  • Crude Oil

    65.94
    +0.66 (+1.01%)
     
  • Gold

    1,832.60
    -3.50 (-0.19%)
     
  • Silver

    27.50
    -0.16 (-0.59%)
     
  • EUR/USD

    1.2132
    -0.0021 (-0.17%)
     
  • 10-Yr Bond

    1.6240
    0.0000 (0.00%)
     
  • Vix

    21.80
    +2.14 (+10.89%)
     
  • GBP/USD

    1.4128
    -0.0016 (-0.11%)
     
  • USD/JPY

    108.8100
    +0.1900 (+0.17%)
     
  • BTC-USD

    56,834.93
    +1,142.10 (+2.05%)
     
  • CMC Crypto 200

    1,542.27
    +1,299.59 (+535.52%)
     
  • FTSE 100

    6,998.65
    +50.66 (+0.73%)
     
  • Nikkei 225

    28,147.51
    -461.08 (-1.61%)
     
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

GameStop shares soar after CEO departure news, 'RoaringKitty' doubles stake

Daniel Howley
·Technology Editor
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

GameStop (GME) shares surged Monday by as much as 10% in early trading following news that the video game retailer's CEO George Sherman is stepping down by July 31 after just two years on the job. The stock was still up 6.26% as of market close on Monday.

The news also follows moves by investor Keith Gill, who goes by "RoaringKitty" and "DeepF—ingValue" online, in which he exercised 500 call options on GameStop's stock at $12 giving him 50,000 additional shares, according to Bloomberg.

Gill also bought up another 50,000 shares of the company, bringing his total stake to 200,000 shares, or more than $33 million.

undefined

GameStop has been the king of the so-called meme stocks including AMC (AMC) and Bed Bath & Beyond (BBBY) that took off as retail investors piled into the market amid the pandemic. Members of the Reddit board r/WallStreetBets were particularly heavy investors in GameStop, pushing the stock up more than 3,000% in the last 12 months.

Keith Gill, an individual online investor in GameStop, testifies during an entirely virtual hearing of the U.S. House of Representatives Committee on Financial Services entitled “Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide?”, in Washington, U.S., February 18, 2021.   House Committee on Financial Services/Handout via Reuters
Keith Gill testifies during an entirely virtual hearing in Washington, U.S., February 18, 2021. House Committee on Financial Services/Handout via Reuters

The trading frenzy spurred the trading platform Robinhood to temporarily halt buying of GameStop in January. The next month, the House Financial Services Committee held a hearing grilling various participants in the GameStop saga, including "Roaring Kitty" himself as well as the CEOs of Robinhood and Reddit.

Also in February, Gill was hit with a proposed class action lawsuit claiming he misrepresented himself as an amateur investor, despite previously working in the financial services industry. Gill maintains he did not provide any investing advice during his YouTube broadcasts, in which he discussed his GameStop investments.

This content is not available due to your privacy preferences.
Update your settings here to see it.

Gill, and other investors, say they believe in GameStop's proposed turnaround plan, that will see the ailing brick and mortar retailer transform its business model to one that pushes more digital sales. The plan also calls for the company to expand its product offerings into spaces tangential to gaming including TVs, monitors, and other gaming accessories.

Fundamental to that strategy is incoming GameStop chairman and Chewy (CHWY) cofounder Ryan Cohen, an activist investor in the retailer. Cohen's expertise in online sales is expected to be key to the company's future plans.

GameStop reported its Q4 earnings last month falling short of Wall Street expectations, with net sales down year-over-year from $2.19 billion in Q4 2019 to $2.12 billion. Online sales, however, increased 175%.

Sign up for Yahoo Finance Tech newsletter

Got a tip? Email Daniel Howley at dhowley@yahoofinance.com over via encrypted mail at danielphowley@protonmail.com, and follow him on Twitter at @DanielHowley.

More from Dan:

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, LinkedIn, YouTube, and reddit. Find live stock market quotes and the latest business and finance newsFor tutorials and information on investing and trading stocks, check out Cashay.