Shares of GameStop Corp. GME,
On Monday, premarket trading fell 9.7% after the video game and consumer electronics retailer announced plans to sell up to 3.5 million common shares. The company plans to use the proceeds from its “at-the-market” offering, which represents approximately 5% of its outstanding shares, to accelerate its transformation, for general corporate purposes and to strengthen its balance sheet. Separately, GameStop said total revenue for the first nine weeks through April 4 was up 11% from the same period a year ago, including a 5.3% growth in February and an 18% increase in March. . GameStop said sales were negatively impacted by temporary store closings and other mandatory restrictions due to the COVID-19 pandemic, which resulted in a 13% decline in store stock from the same period a year ago. The stock’s drop comes after it rose 5.8% last week, breaking a 31.6% drop in two weeks. Over the past three months, the stock is up 1,002.2% in the past week, while the S&P 500 SPX,
has gained 7.9%.