GameStop plunges 27% as company says it plans to sell up to 5 million shares and discloses SEC request for information on trading activity
GameStopdropped 27% on Thursday on the company's plans to sell additional shares and as the SEC looks into trading activity of its stock.
- The video-game retailer, whose shares are part of a meme-stocks rally, said it will cooperate with the SEC's inquiry.
- The company could sell up to 5 million shares.
GameStop sank by nearly 30% on Thursday after the video game retailer said it may sell millions of shares and said the Securities and Exchange Commission has requested information as part of its investigation into the trading of its shares.The company issued the updates late Wednesday alongside first-quarter financial results that beat Wall Street's expectations.
GameStop's stock price has soared by more than 1,500% so far this year as part of a surge in so-called meme stocks -- including AMC Entertainment, Bed Bath & Beyond, BlackBerry -- that's been driven by retail investors working together to force a short squeeze on hedge funds aiming to profit from bets that the companies' share prices will fall."We are in the process of reviewing the request and producing the requested documents and intend to cooperate fully with the SEC Staff regarding this matter. This inquiry is not expected to adversely impact us," GameStop said as part of its quarterly financial report.
GameStop late Wednesday said sales rose to $1.28 billion, higher than the $1.16 billion expected by four analysts in a FactSet poll. Its adjusted loss was $0.45 a share, narrower than its adjusted loss of $2.44 a share a year earlier and narrower than Wall Street's forecast of a loss of $0.83 a share.
- Delhi reports its lowest daily COVID-19 cases in 104 days, records 213 single day COVID-19 cases
- Here’s how to recharge your Reliance Jio on WhatsApp
- India may classify Bitcoin as an asset class, but that may not solve the underlying problem
- Facebook rolls out new chat themes and payment options in Messenger app for US users
- Dodla Dairy's ₹520 crore IPO isn't to expand into new markets but to strengthen its foothold where it already exists