GameStop shares tumbled 19.7% Friday after the video game retailer said it plans to sell additional shares and reported preliminary results that showed a drop in first-quarter sales.
In a new regulatory filing, the video game retailer said it will sell up to 45 million class A common shares in an at-the-market offering. The sale comes after GameStop shares surged earlier this week in a brief revival of the meme stock trade.
Meanwhile, in a separate statement, GameStop said it now expects net first-quarter sales in the range of $872 million to $892 million, down from around $1.24 billion in the same quarter last year. Two analysts polled by FactSet said they expected a first-quarter revenue of around $1 billion.
More to the point, if you think about what the mechanisms of power were able to do in the first run to stop equitable practices, they've had 3 years to plan for such a recurrence...I'd put my money on large shareholders or board members having taken money on the side or a wink wink agreement to issue shares when price jumps to protext shorts. Either would have the same effect but the timing of the issuance and roaring Kitty's reemergence is not coincidental.