In a recent interview on ‘The Claman Countdown,’ Charlie Gasparino from FOX Business discussed GameStop’s recent disappointing earnings report. The video game retailer saw its shares plummet on Friday after the release of preliminary financial results and the announcement of a plan to sell millions of shares of common stock.
According to a filing with the Securities and Exchange Commission (SEC), GameStop may sell up to 45 million shares of its common stock through Jefferies as its sales agent. The company stated that the net proceeds from the offering would be used for general corporate purposes, including potential acquisitions and investments in accordance with their investment policy.
The sudden rise in GameStop’s stock price earlier in the week was due to meme stock trader “Roaring Kitty” resuming activity on social media. This began with a cartoon post of two gamers and was followed by several other posts and videos. However, the stock subsequently experienced a significant drop, erasing much of the gains it had previously made.
This news has caused concern among investors and analysts about the long-term prospects of the company. GameStop’s preliminary quarterly results indicated that net sales for the first quarter would be in the range of $872 million to $892 million, and the net loss would fall between $27 million to $37 million.
