GameStop Stock Plummets: CEO Matthew Furlong Fired and Revenue Falls Short

Get the latest update on GameStop (GME) as its stock takes a significant hit in pre-market trading. The decline follows the termination of CEO Matthew Furlong. And the release of disappointing quarterly revenue figures. Read on to learn more about GameStop's current situation and its impact on the company's future.

In an unexpected turn of events, GameStop announced the termination of CEO Matthew Furlong in conjunction with its quarterly earnings report. The renowned video game retailer appointed its largest investor Ryan Cohen. As he is the new executive chairman, signifying a change in leadership.


GameStop opted not to hold a customary quarterly earnings call to address the financial results. The company's first-quarter performance fell short of Wall Street's expectations. With revenue totaling $1.24 billion, below the projected $1.34 billion. So, GameStop's stock plummeted by 20% at the start of Thursday's trading session.

GameStop's try to revitalize its business has reached a pivotal moment following the departure of Matthew Furlong. Furlong, a former executive at Amazon, was seen as a key figure capable of leading GameStop's digital transformation efforts.

During the meme stock craze, Ryan Cohen, the founder of Chewy (CHWY) and a well-known activist investor, rose to prominence. In January 2021, Cohen joined GameStop's board of directors. The company's stock was reaching new heights due to the uptick in Reddit user interest.

A recent announcement states that Cohen will be in charge of managing finances and allocating capital. In response, he took to Twitter, posting "Not for long" less than thirty minutes after the official statement was released.

But, some Wall Street analysts remained unimpressed with GameStop's recent developments. Michael Pachter, Managing Director at Wedbush, maintained his Sell rating on GameStop shares and lowered the price target from $6.50 to $6.20.

According to Pachter, the gaming industry's transition toward subscription services and digital downloads. Along with the decline in physical software sales, paints a grim picture for GameStop's future. He recognizes the potential for the company to generate profits. It is a turnaround is unlikely without capable management."

Pachter emphasized the difficulty GameStop may have in locating a suitable successor for its CEO. Given the lack of clear direction and what he described as the insensitive termination of Matthew Furlong.


GameStop finds itself at a crucial turning point as it grapples with shifts in leadership, underwhelming financial performance, and skepticism from Wall Street analysts. The company's capacity to surmount these obstacles and attract capable management will play a decisive role in shaping its future outlook. Stay tuned for further updates on GameStop's journey.

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