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GameStop has announced plans to sell up to 45mn new shares, following a week in which its stock soared after the re-emergence of a popular day trader synonymous with “meme stock” investing.
The video games store operator announced the plans in a filing on Friday with the US securities regulator. It accompanied preliminary results showing it expected net sales in its first quarter to decline from a year ago and the midpoint for its net loss range came in weaker than Wall Street forecast.
GameStop shares were down almost 23 per cent in pre-market trading in New York. At the current pre-market price, this would raise just under $1bn.
The latest move continues a volatile week for the stock, which hit a two-and-a-half-year high on Wednesday and had gained 58.5 per cent in the four sessions to Thursday’s closing bell. This followed a post on X from trader Keith Gill, known as “Roaring Kitty”, last weekend.
Texas-based GameStop said it expected first-quarter net sales to be in the range of $872mn to $892mn, a drop of at least 27 per cent from a year ago, and less than the $1.05bn analysts had expected. Although the company’s forecast for a net loss in the range of $27mn to $37mn would be an improvement from 12 months ago, the midpoint is worse than the $30.6mn net loss Wall Street had predicted.
This is a developing story
