Tae Kim, a technology columnist for Bloomberg Opinion, has published an article titled, “GameStop Stock Mania Is Making Its Turnaround Possible” The article references how the $1B offering is bullish for GameStop and allows Ryan Cohen to fund his transformation moving forward, shifting away from the traditional retail experience.
It is a prudent and necessary move. With GameStop’s share price up nearly 900% this year, the company will be able to raise significantly more funds to expand its e-commerce capabilities. The turnaround plan outlined in its latest annual report includes building fulfillment operations for faster delivery times, overhauling its website and starting a U.S.-based customer service operation. All these initiatives are needed to improve GameStop’s customer experience and will require significant investments.
Tae Kim has been reporting on GameStop’s fundamentals since long before the volatility of January, so we recommend checking him out.