The company is getting ready to capitalize on its latest success
The Reddit-fueled stock, GameStop, closed at $186.95 per share after the company announced that it wants to sell up to 3.5 million shares worth no more than $1 billion. According to a statement, the proceedings will be used to speed up the transition to e-commerce.
However, this is not the first time when GameStop tries to sell its shares. According to a December SEC filing, at that time the company was looking to sell $100 million worth of shares via an at-the-market offering (ATM). The event never took place, mainly because security laws prevent it from doing so without disclosing its latest financial situation.
Despite having rallied more than 1,000% since the beginning of the year, GameStop declined almost 14% in just one day. It is not the first time when its shares tanked this much. It lost 33% after it posted fiscal fourth-quarter earnings that were below estimates. Moreover, at that time, the company’s representatives were reluctant to give any additional information.
Sources: reuters.com, cnbc.com
Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.
Key Way Markets Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance and forecasts are not reliable indicators of future results.