Two months after the market situation took over GameStop shares for a month, the video game dealer said on Monday he would sell up to $ 3.5 million shares at a much higher price.
Shares of so-called meme stock fell by almost 14% in the news, ending the day by a 2% drop to $ 186.95. Nasdaq rose 1.7% to $ 225.49, boosted by a positive performance report on Good Friday. Gamestop said the shares would be sold on a "market" offer, allowing a publicly traded company to raise money over time.
Strange resilience amidst the hedge fund that has severely cut GameStop off, it is predicted that stock prices will fall, and small investors who have challenged it, sent confused company shares rising earlier this year.
Market analysts had urged the company to put more stocks in the market as the share price, which was around $ 20 each, was close to around $ 500. for GameStop.
And two weeks ago, GameStop revealed by filing with the Securities and Exchange Commission that it had been considering such a sale since January.
Shares rose sharply by 1,625% in January as groups of small and newly invested investors in the media improved the trader's stock, putting pressure on hedge funds to sell "short-term" and justifying the stock price only.
Shares tend to be smooth, however, when a share sale is announced because it can reduce the number of shares already in the hands of investors. That happened just before the opening bell on Monday, with shares falling nearly 16%. But the budget is still worth more than $ 161, meaning prices have risen almost 900% this year.
The company, based in Grapevine, Texas, also said Monday that first-quarter retail sales had risen nearly 11% since last year, which is when the epidemic hit the U.S. And retailers like GameStop are forced to close its stores.
GameStop revealed by filing with the Securities and Exchange Commission that it had been considering such a sale since January.
In the most recent financial year, GameStop reported a loss of $ 215 million, which improved its 2019 loss by $ 471 million. Total sales by 2020 were nearly $ 6 billion, compared to $ 6.5 billion last year.