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Baird says GameStop's turnaround plan remains a mystery, predicts 90% stock decline

Shoppers wait for a GameStop store to open on at the Tysons Corner Center, in Tysons, Virginia, November 27, 2020.
Hannah McKay | Reuters

The plan to turn beleaguered retailer GameStop into an e-commerce powerhouse is still murky five months after the stock first caught fire, according to investment firm Baird.

On Wednesday, GameStop reported stronger-than-expected revenues for the first quarter, helped by console sales, and announced that it had tapped two Amazon veterans as CEO and CFO. They join board member and Chewy co-founder Ryan Cohen as high-level leaders at the company with e-commerce experience.

However, the company declined to provide forward guidance and announced that it might sell up to 5 million shares. The stock was down 10% Thursday morning.

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