Meme-stock star GameStop continues to forge ahead on the comeback trail. The company announced Tuesday (July 6) that it had signed a lease on a 530,000-square-foot facility in Reno, Nevada.
The company said the move was part of its “continued expansion of its North American fulfillment network.” Video-game retailer GameStop said that the Reno facility will help it improve its shipping of its products across the West Coast.
This expansion follows the Grapevine, Texas-based GameStop’s signing of a lease of a 700,000 square-foot facility in York, Pa. The company said that service was set to serve the East Coast.
Last month, GameStop announced it was was staffing its front office with a couple of eCommerce and tech leaders from Amazon. At the time, investors’ response was a muted wait-and-see approach until the new CEO and chief financial officer actually join the firm.
Incoming CEO Matt Furlong was set to start last month. Amazon colleague and new CFO Mike Recupero was scheduled to come on board July 12.
Add in the fact that they will be getting to work in the relatively unscrutinized dog days of summer, as well as the reality that GameStop won’t report its next quarterly earnings results until early September, and a 90-day hold on emotional reaction has effectively been put in place.
The question is how the meme crowd will react to the new leadership at the top. Perhaps investors will get restless and decide that the stock isn’t exciting enough — and move on to the next new thing.
After all, there are other avenues for speculation. If stockholders bail on GameStop, it could ruin the honeymoon for the incoming team.
The ex-Amazon hires puts renewed focus on Chewy.com billionaire Ryan Cohen. In a short time, GameStop’s chairman has installed an entirely new board and management team at the top. Cohen took over as chairman in January.