Investors have been in a good mood about the stock market lately, but that positive sentiment came to at least a temporary end on Monday. Major market benchmarks lost ground as market participants tried to figure out what the next steps will be following an anticipated economic recovery. As of 12:15 p.m. EDT, the Dow Jones Industrial Average (DJINDICES:^DJI) was down 142 points to 34,059. The S&P 500 (SNPINDEX:^GSPC) had fallen 24 points to 4,162, and the Nasdaq Composite (NASDAQINDEX:^IXIC) was down 154 points to 13,899.
Even on a down day for the broader market, there were still some prominent winners on Wall Street. GameStop (NYSE:GME) saw another surge higher as the video game retailer made another big move in its executive suite. Meanwhile, Clean Energy Fuels (NASDAQ:CLNE) announced what could become a game-changing collaboration.
GameStop keeps leveling up
Shares of GameStop rose more than 8% early Monday afternoon. The company has been going through a major upheaval recently, and its latest move will have a potentially dramatic impact on its future strategic course.
In what GameStop called its chief executive officer successor plan, the retailer said CEO George Sherman will step down from his leadership role as of the end of July. The departure could happen sooner if GameStop finds a successor more quickly. As has happened with other recent C-suite leaders, GameStop noted that the board of directors has evaluated Sherman to make sure the company has people with the skills needed to help it move forward.
Activist investor and incoming board chair Ryan Cohen expressed his appreciation for Sherman’s work, but he nevertheless seemed to believe that a different CEO would be more effective in accelerating the next phase of GameStop’s business transformation. Cohen hasn’t pulled punches with the speed of his efforts, seeing time being of the essence in a fast-moving industry.
GameStop shares have jumped more than tenfold since December, and the stock remains quite volatile. Investors need to be prepared for big swings in both directions no matter what happens with GameStop’s underlying business.
Elsewhere, Clean Energy Fuels picked up more than 7% early Monday afternoon after having been up more than 25% earlier in the day. The natural gas transportation infrastructure specialist announced a new deal with e-commerce giant Amazon (NASDAQ:AMZN) that could be the beginning of a lucrative trend.
The agreement between Clean Energy and Amazon calls for Clean Energy to offer its low-carbon and negative-carbon renewable natural gas at more than two dozen of its existing fueling stations. In addition, Clean Energy anticipates having fuel available at 19 new or upgraded fueling stations that should be through construction by the end of 2021. The footprint of these stations will cover 15 states.
The deal also included a substantial number of 10-year warrants issued to Amazon with an exercise price of $13.49 per share, which was roughly 20% higher than where Clean Energy stock closed on Friday. Amazon will be limited to a 5% stake in Clean Energy until it gives notice to the natural gas provider.
Amazon and other big companies are starting to be more aware of their carbon footprints, and natural gas powered delivery vehicles are playing a role in Amazon’s broader strategy. If Clean Energy can get its toes in the door of that opportunity, it could mean more big deals ahead.
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