- Wedbush analyst Pachter calls investment plan ‘alarming’
- New policy extends to stocks and ‘other investments’
A GameStop store in the Queens, New York, on Dec. 2. Shares of GameStop Corp. are now more than 80% below their January 2021 peak.
Photographer: Bing Guan/BloombergGameStop Corp. disclosed an unorthodox plan for its roughly $900 million in cash and equivalents: allow its billionaire chief executive to buy stocks of other companies.
Buried in the earnings filing, the new policy enables, Ryan Cohen — the video-game retailer’s largest shareholder who has a cult-like following among individual investors — to invest in equities instead of short-term loans. The pivot caught some Wall Street analysts off guard.
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GameStop’s ‘Inane’ Pivot Lets CEO Ryan Cohen Invest Funds in Stocks