Welcome to Extreme Investor Network, where we bring you the latest and most exciting news in the world of finance. Today, we’re diving into the recent developments at GameStop, a company that has captured the attention of investors and meme enthusiasts alike.
GameStop recently made headlines by raising over $2 billion in a stock sale. The video game retailer capitalized on the renewed interest in meme stocks, thanks in part to the resurgence of trader Roaring Kitty. The company completed an at-the-market equity offering, selling 75 million shares to raise a whopping $2.14 billion. GameStop has stated that it plans to use the funds for general corporate purposes, including potential acquisitions and investments.
However, the stock saw a slight dip in premarket trading following the news. GameStop shares have been on a rollercoaster ride this week, experiencing an 8% increase so far. Wedbush analyst Michael Pachter estimated that the sale was done at an average share price of $28.50, coinciding with a significant sell-off during Roaring Kitty’s YouTube livestream last Friday.
The sell-off was triggered after GameStop released its earnings report ahead of schedule, revealing a 29% drop in sales in the first quarter. Roaring Kitty, also known as Keith Gill, hosted his first livestream in years on the same day, which further exacerbated the sell-off. Pachter, who has an underperform rating on GameStop, set a 12-month price target of $11, more than 60% lower than the previous closing price of $30.49.
Keep in mind that investing in meme stocks like GameStop can be highly volatile and risky. It’s essential to do thorough research and consult with a financial advisor before making any investment decisions. Stay tuned to Extreme Investor Network for more updates on GameStop and other exciting investment opportunities. Happy investing!