GameStop falls as it launches new opportunistic share sale

GameStop Corp (NYSE) shares were falling in an otherwise quiet Friday trading session, after revealing disappointing sales numbers and announcing another new equity raise.

In New York, the share price was down $12.05 or 25.9% changing hands at $34.50.

The retailer, and favourite of the so-called ‘meme traders’, intends to sell another 75 million new shares to investors. It comes after 45 million shares were sold last month, raising $993 million for the company.

First quarter sales, meanwhile, fell to $882 million from $1.24 billion last year, versus consensus Wall Street estimates of $995.3 million.

GameStop nonetheless narrowed its net loss to $32.3 million, or 12 cents per share.

It still disappointed compared to expectations, however, as analysts had previously forecast a 9 cents loss.

Last night, GameStop shares soared in ‘after hours’ trading as Keith Gill, the investor known as “Roaring Kitty,” announced he would be returning to livestream.

Gill, who played a significant role in the original meme stock rally with his bullish comments on social media, has not live-streamed since 2021. His various recent social media posts have, however, been a significant factor in GameStop volatile trading.