GameStop surges after board overhaul

Yahoo Finance's Dan Howley joined Yahoo Finance Live to discuss why GameStop stock is hitting new records.

Video Transcript

- We want to take a look at GameStop because GameStop shares soaring today, closing up just around 57%-- you can see it there on the screen-- after hours, though, under a little bit of pressure. But the big story today was the new board members and the holiday sales. And Wall Street was clearly very excited about that, with the day's gains up over 50%.

Dan Howley has a closer look at this for us. Dan?

DAN HOWLEY: That's right. GameStop reached an agreement with activist investor RC Ventures. They're going to add three seats to the board and essentially have a greater say in what the company, obviously, has to do.

Now, there were some kind of ups and downs for GameStop in the holiday season. Yes, they did see good sales. But they also closed a number of stores, which has, obviously, been reported. So because of that, their comp was not as good as they originally wanted.

There's also something to be said about the difficulty in people procuring those new consoles that were driving sales-- the PlayStation 5 and the Xbox Series X. If you can find them now still, good luck because they're very hard to come by. And so there's been that kind of back-and-forth.

I have both. So I'm spoiled. But it's-- really does kind of speak to the fact that Sony and Microsoft had these launches, knew that they were coming and knew that there was high demand, and still didn't perform as well as they should have as far as getting them into consumers' hands.

- All right. Thanks, Howley.