On Tuesday after the market closed, GameStop (NYSE: GME) published its fourth quarter results which missed analyst estimates on revenue and earnings. The stock tumbled 33% and Wedbush Securities downgraded it from neutral to underperform.
Moreover, GameStop disclosed that it is considering an equity sale to fund the digital transition into e-commerce. Plans for a $100 million equity issuance were previously discussed in December.
On a better note, co-founder and former CEO of the online pet retailer Chewy (NYSE: CHWY), Ryan Cohen, who also serves on GameStop’s Board of Directors, will help in this transition.
One positive number included in the results which reflects a more aggressive shift towards online sales was that global e-commerce revenues soared by 175% in Q4.
Further emphasizing the strategic shift towards e-commerce, GameStop also announced the appointment of Jenna Owens as the new COO. Owens has previous experience at both Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOGL).