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GameStop Corp. (NYSE:GME) fell sharply in early action on Thursday after the retailer missed estimates with its Q1 earnings report and disclosed that CEO Matthew Furlong was terminated.
Shares of GameStop (GME) were down 19.38% to $21.05 at 10:20 a.m. and swapped hands as low as $20.10. Short interest on GME is not as high as it once was, but still stands at an elevated level of 21.46% of total float.
The few sell-side analysts that still follow GameStop (GME) were not impressed with the report or outlook for the year ahead.
Jefferies analyst Andrew Uerkwitz said the revolving door of top execs at GameStop (GME) represents more of the same for the company. “It’s hard to have an opinion with no earnings call, little-to-no investor communication, and lack of consistent strategic vision,” he noted. The C-suite scorecard on GameStop (GME) shows five different CEOs and three different CFOs over the last five years. Wedbush Securities was even more direct in its post-earnings appraisal of GME. “We remain convinced that GameStop is doomed,” warned analysts Michael Pachter and Nick McKay. The lack of a clear direction and the callous termination of CEO Matthew Furlong are seen making it difficult for Ryan Cohen to attract a qualified CEO replacement. Wedbush cut its price target to $6.20.
