GameStop Corp. Sees Significant After-Hours Surge Amid Equity Offering Completion

GameStop Corp. Cl A (GME) saw a significant boost in its after-hours trading today, with the stock jumping to $21.49. This marks a solid increase of $2.49 or 13.10% and was backed by a strong trading volume of 11.41 million shares. This impressive rise reflects a renewed wave of confidence and interest among investors in GameStop, especially amid the recent market volatility. It’s a development that’s catching the eye of both retail and institutional investors alike.

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Recent Developments at GameStop

GameStop Corp. (NYSE: GME) has wrapped up its “at-the-market” equity offering program, which it had previously disclosed to the public. On May 24, 2024, the company announced the completion of this program, which kicked off with a prospectus supplement filed on May 17, 2024, with the U.S. Securities and Exchange Commission. Through this offering, GameStop aimed to sell up to 45 million shares of common stock, ultimately raising about $933.4 million in gross proceeds before accounting for commissions and expenses.

Prior to this, on May 17, 2024, GameStop provided preliminary unaudited financial results for the first quarter ending May 4, 2024. For the 13-week period ending May 4, 2024, compared to the same period ending April 29, 2023, the company reported:

  • Expected net sales between $0.872 billion and $0.892 billion, compared to $1.237 billion in the previous fiscal quarter.
  • SG&A expenses are anticipated to be between $290 million and $300 million, down from $345.7 million in the prior year.
  • An expected net loss ranging from $27 million to $37 million, an improvement from the $50.5 million net loss in the previous year.
  • Cash, cash equivalents, and marketable securities are projected to be between $1.073 billion and $1.093 billion, compared to $1.310 billion at the end of the prior fiscal quarter.

These developments underscore GameStop’s ongoing strategic efforts and financial adjustments, which continue to draw significant attention from the market.