GameStop and AMC Cash In: Behind the Back-to-Back Sell-Offs

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Meme Stock Frenzy: GameStop Surges After Selling 45 Million Shares

Los Angeles, CA – In a surprising move, floundering video game retailer GameStop has made a spectacular recovery, raising a whopping 3.4 million by offloading 45 million shares. This staggering sale sent its stock soaring by over 12% after the closing bell.

A Lifeline for a Struggling Giant

Despite primarily relying on brick-and-mortar stores, GameStop has faced immense competition from e-commerce giants in recent years. The company’s shares have plummeted as customers flock to online retailers for their gaming needs.

Reigniting the MEME Stock Mania

The unexpected share sale comes amidst a renewed surge in retail trading activity, sparked by the resurgence of “Roaring Kitty” Keith Gill on social media. Gill’s bullish stance on GameStop had ignited the meme stock frenzy in 2021.

An Unusual Deal

The share sale was structured as an “at-the-market” offering, allowing shares to be sold at the current market price. Based on calculations, GameStop sold its shares at an average price of .74 each.

Future Plans and an Uncertain Path

GameStop has not disclosed the exact use of these funds, but they could potentially fuel acquisitions or investments aimed at revamping its business model.

Quarterly Results Fall Flat

Despite the share sale success, GameStop’s first-quarter financial results are expected to be grim. The company projects a sharp decline in net sales, from .24 billion a year ago to between 2 million and 2 million.

AMC’s Similar Strategy

Another retail darling, theater chain AMC, recently completed a similar “at-the-market” share sale program, raising 0 million.

Conclusion

GameStop’s remarkable share sale underscores the resilience of the meme stock phenomenon. Despite its challenges, the company has found a lifeline that could potentially help it navigate the treacherous waters of the retail gaming market. As investors eagerly await more details on GameStop’s future plans, the stock’s trajectory remains uncertain, but it’s clear that the meme stock frenzy is far from over.

Data sourced from: cnbc.com