Top GameStop Investor Wants to Turn Retailer Into Amazon Rival

Ryan Cohen the activist investor who helped spark the GameStop phenomenon wants to turn the video game retailer into an Amazon competitor. Ambitious doesnt begin to cover it.

Cohen made his fortune building Chewy into a pet supply giant. Now he thinks he can do the same with GameStop transforming it from a dying mall retailer into an e-commerce powerhouse.

Bloomberg profiled Cohens vision and the challenges he faces.

The meme stock mania gave GameStop an unexpected war chest. All those retail investors buying shares drove the price up and the company sold stock at inflated prices. Now they have cash to invest.

Market manias create opportunities for companies smart enough to capitalize on them.

The skeptics have valid points. Amazon has decades of infrastructure logistics expertise and scale advantages. GameStop sells video games in malls. The gap is enormous.

But Cohen argues gaming culture and community give GameStop something Amazon lacks. A passionate customer base that identifies with the brand. Whether thats enough is the billion dollar question.

The transformation will take years if it works at all. In the meantime GameStop remains a volatile stock beloved by Reddit and despised by short sellers.

Analysis January 2021