On May 28, 2024, in Miami, Florida, GameStop store shelves were filled with merchandise.
Michael Nagel | Bloomberg | Getty Images
game station The video game company raised more than $2 billion in a recent stock offering, capitalizing on the meme-driven backlash over the return of trader Roaring Kitty.
The retailer announced Tuesday night The company completed a market share offering, selling up to 75 million shares, raising $2.14 billion. GameStop said it intends to use the funds for general corporate purposes, which may include acquisitions and investments.
The stock fell more than 1% in premarket trading Wednesday. The stock continues its roller-coaster ride this week, rising 8% so far.
Wedbush GameStop analyst Michael Pachter estimated the sale at an average share price of $28.50, meaning the sale coincided with a sharp sell-off during meme stock leader Roaring Kitty’s YouTube livestream last Friday.
GameStop shares fell 40% on Friday after the company released an earnings report days ahead of schedule and said first-quarter sales fell 29%.
That day, Roaring Kitty (aka Keith Gill) hosted his first live broadcast in several years, which seemed to exacerbate the sell-off. Gill reiterated his previous investment thesis and offered no new reasons for his large stake. He revealed that he has no institutional backers and that the GameStop position he shared in the screenshot is his only bet.
Pachter rates GameStop an underperform and has a 12-month price target of $11, more than 60% below Tuesday’s closing price of $30.49.
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