GME - GameStop Shares Fall On Offering: 'One Shouldn't Buy Stocks Just Because They Are Going Up' Fund Manager Says | Benzinga
After a multi-day rally to start the week, shares of video game retailer GameStop Corporation (NYSE:GME) are crashing Friday morning with news of preliminary quarterly results and an announced share offering.
What Happened: The week started with a bang for GameStop and other meme stocks with the return of the Roaring Kitty account on social media, believed to still be owned by Keith Gill, a prominent figure in the 2021 short squeeze storyline.
GameStop shares hit new 52-week highs on both Monday and Tuesday before seeing declines later in the week.
On Friday morning, the video game retailer announced that it expects first-quarter revenue to be in a range of $872 million to $892 million. The company reported $1.24 billion in revenue in last year's first quarter.
Analysts are expecting GameStop to report revenue of $1.05 billion in the first quarter, according to data from Benzinga Pro.
The company also filed an at-the-market offering of up to 45 million shares. The proceeds from the sale would be used for general corporate purposes, which could include investments and acquisitions.
While shares are falling on Friday’s news, many aren't surprised by the offering. This includes Benzinga's recent article listing five items that could hurt the GameStop rally.
" If you don't expect an ...