Nothing specific caused GameStop rally: Strategist

CNBC Television published this video item, entitled “Nothing specific caused GameStop rally: Strategist” – below is their description.

CNBC’s “Power Lunch” team discusses GameStop’s rally, retail traders and markets with Steve Sosnick of Interactive Brokers. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi

Shares of GameStop surged more than 100% on Wednesday as investors poured into the brick-and-mortar retailer amid a C-suite shake-up.

Shares were halted with less than 30 minutes left in the trading day and the stock ended the day up 103.9%. Shares of GameStop rose another 83% in after hours trading on Wednesday.

GameStop announced Tuesday that its chief financial officer Jim Bell will resign on March 26.

“Mr. Bell’s resignation was not because of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices, including accounting principles and practices,” the company said in a filing with the Securities and Exchange Commission.

Sources familiar with the matter told Business Insider that Bell did not leave willingly, but was pushed out by Ryan Cohen, co-founder of Chewy who made an investment in GameStop last year in an effort to help the company accelerate its push online.

Bloomberg News reported on Tuesday evening that GameStop’s board pushed Bell out in order to execute its turnaround more quickly, according to sources familiar with the matter.

Cohen’s appointment to the GameStop board helped drive the heavily shorted stock upward in January, which resulted in the epic short squeeze in GameStop that provoked retail trading mania and eventually attention from Congress.

“We acknowledge that leadership changes often follow activist settlements and Mr. Bell’s exit was mutual, non-immediate, and suggests no disagreements with company/board,” Jefferies equity analyst Stephanie Wissink told clients. “We believe Mr. Bell deserves recognition for a series of actions that protected GME equity during the late stages of the last hardware cycle, when sales were down sharply.”

Jefferies added that GameStop will likely look for a CFO replacement with a tech, compared to retail, background, as GameStop focuses on e-commerce growth.

A handful of other Reddit trades rose in after hours trading on Wednesday. Shares of AMC popped 18% and Koss gained 54%.

» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision

» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC

» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast

Connect with CNBC News Online

Get the latest news: http://www.cnbc.com/

Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC

Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC

Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC

Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC

https://www.cnbc.com/select/best-credit-cards/

#CNBC

#CNBCTV

CNBC Television YouTube Channel

Got a comment? Leave your thoughts in the comments section, below. Please note comments are moderated before publication.

About This Source - CNBC Television

CNBC is an American pay television business news channel, which primarily carries business day coverage of U.S. and international financial markets. Following the end of the business day and on non-trading days, CNBC primarily carries financial and business-themed documentaries and reality shows.

As of February 2015, CNBC is available to approximately 93,623,000 pay television households (80.4% of households with television) in the United States.

Recent from CNBC Television:

  • NASA predicts giant asteroid could hit Earth in 2182
  • Family members push to make Surfside condo collapse sight a memorial
  • Analyst Ivy Zelman sees a lot of ‘red flags’ in housing market and is staying on the sidelines
  • In This Story: GameStop

    GameStop (NYSE: GME) is an American video game, consumer electronics, and gaming merchandise retailer. The company is headquartered in Grapevine, Texas, United States, a suburb of Dallas, and operates 5,509 retail stores throughout the United States, Canada, Australia, New Zealand, and Europe as of February 1, 2020.

    6 Recent Items: GameStop

  • Robinhood’s internal messages unveiled from January 28
  • Hundreds of pages show Robinhood’s internal conversations over GameStop
  • Marc Benioff praises Robinhood for transforming its corporate values after GameStop saga
  • AMC and GameStop see retail trading interest dip as new meme stocks rally: CNBC After Hours
  • Jim Cramer breaks down GameStop earnings and the meme stock phenomenon
  • Jim Cramer: GameStop offers nothing right now versus AMC’s numbers
  • In This Story: Reddit

    Reddit is a social news aggregation, web content rating, and discussion website. Registered members submit content to the site such as links, text posts, and images, which are then voted up or down by other members.

    2 Recent Items: Reddit

  • More Blizzard leaders quit as things get much worse
  • Venom #1 Trailer | Marvel Comics
  • Leave a Comment

    We don't require your email address now, just your name. BUT, if you do add it, you may be notified if there are replies to your comment. Please make respectful comments, which add value, and avoid personal attacks on others. Comments failing to adhere to these guidelines will not be published.