GameStop (GME) Stock Price Braces For Fall As 75M Shares Selloff Looms
GameStop (GME) has once again taken Wall Street by storm, announcing plans to sell 75 million of its shares to raise capital via equity offering today, June 7. Following the firm’s revelation of its Q1 2024 results, in which net sales stood considerably low compared to the previous year, the move comes to mitigate losses. Meanwhile, the GameStop (GME) meme stock remains poised to face the impact of the colossal selloff. It’s worth noting that the token already noted a considerable dip per pre-market data after a phenomenal price rally within the past 24 hours.
GameStop Files Form 8-K With U.S. SEC
According to Form 8-K with the U.S. SEC (Securities and Exchange Commission), GameStop Corp. filed a prospectus supplement connected to the company’s “at-the-market offering” program for the “offer and sale” of 75 million GME shares through Jefferies LLC, the sales agent. This aligns with the firm’s existing Open Market Sale Agreement, as seen with its previous selloff of 45 million shares in May.
Meanwhile, the company reported net sales of $881.8 million in Q1 this year, a figure that is lower than the previous year’s $1.237 billion. The firm also reported a loss of 12 cents per share, missing the estimate of a loss of 9 cents per share. These figures, when considered collectively, provide a clear understanding of the firm’s decision to sell huge amounts of its shares.
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GME Stock Price To Fall Ahead?
GME stock price plummeted 16.71% while writing, reaching $38.77, according to pre-market data by Nasdaq. As mentioned above, the stock slumped earlier with the selloff of 45 million shares, causing speculations that a massive price fall lies ahead for the meme-based investment product.
It’s crucial to note that the meme stock experienced a significant surge in the past 24 hours, directly correlating with ‘The Roaring Kitty,’ aka Keith Gill’s announcement of an upcoming YouTube live stream. This development, however, was overshadowed by the massive selloff plans surfacing in the market, leading to a slump in GME price action.
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