Why Is GameStop Stock Crashing Premarket After Early Gains? (CORRECTED)
Portfolio Pulse from Shanthi Rexaline
GameStop Corp. (NYSE:GME) shares plunged in premarket trading after releasing preliminary Q1 results showing a significant revenue decline and a narrower loss compared to last year. The company also filed for an 'at-the-market' offering to sell up to 4.5 million common shares.
May 17, 2024 | 12:36 pm
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GameStop's preliminary Q1 results show a significant revenue decline and a narrower loss compared to last year. The company also filed for an 'at-the-market' offering to sell up to 4.5 million common shares, leading to a 22.30% drop in premarket trading.
The significant revenue decline and the announcement of an 'at-the-market' offering to sell up to 4.5 million shares are likely to negatively impact investor sentiment, leading to a sharp drop in the stock price.
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