GameStop shares are ‘extremely volatile’ but cannot be controlled: presentation


GameStop said Tuesday that its shares are, and continue to be, “extremely volatile.”

Furthermore, this volatility is due to “numerous circumstances beyond our control.”

The statement in a regulatory filing is the first such statement from GameStop leadership on its current stock price fiasco that has seen its shares rise as much as 1600% in a matter of weeks.

In the “risk factors” section of the annual report, the volatility of the company’s shares is listed as the main risk factor related to the company’s shares. Specifically, he cites “brief squeezes” as the main reason for that volatility.

“The market price of our Class A Common Shares has been extremely volatile and may continue to be volatile due to numerous circumstances beyond our control,” GameStop said at the presentation.

Gamestop

A 12-month chart of GameStop’s stock value demonstrates the meteoric rises and catastrophic falls of the past few months.

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GameStop’s share value has been explosively unpredictable since mid-January.

Between January 15 and 27, the price jumped from around $ 35 to just $ 350. It has seen equally huge declines, but months later it is still in the $ 180 range.

The reason, of course, is the much-discussed “short squeeze” of a large group of individual investors raising the company’s stock price in an effort to defeat short sellers who bet against the stock. It’s been a major topic of discussion for the past few months for many people in the media and on Wall Street, with the exception of the GameStop leadership.

The company has been more or less silent for weeks, and even declined to discuss it on its quarterly earnings call last week. Instead, the company’s leadership focused on the ongoing “transformation” of the company led by co-founder and former Chewy CEO Ryan Cohen.

Since Cohen joined the company’s board of directors in January, and soon after took over a “strategic” committee, the company has hired a series of high-profile hires from companies like Amazon and Chewy.

It’s unclear what Cohen’s specific plans are for the future of the company, but he outlined the plans extensively in an open letter to the company’s board in late 2020.

GameStop, “needs to evolve to become a technology company that delights gamers and offers exceptional digital experiences,” Cohen wrote in the letter, “not remain a video game retailer that over-prioritizes its physical presence and stumbles on the ecosystem. online”.

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