GameStop Corp shares. GME,
fell 9.7% in pre-market trading on Monday after the video game and electronics retailer announced plans to sell up to 3.5 million common shares. The company intends to use the results of the “on the market” offer, which represents about 5% of the outstanding shares, to accelerate its transformation, for general corporate purposes and to strengthen its balance sheet. Separately, GameStop said that total sales in the first nine weeks through April 4 increased by 11% over the same period last year, including a 5.3% growth in February and an 18% increase in March. GameStop said sales were negatively impacted by temporary store closures and other mandatory restrictions as a result of the COVID-19 pandemic, resulting in a 13% reduction in the store base over the same period last year. The retraction in the stock comes after rising 5.8% last week, to reach a two-week drop of 31.6%. In the past three months, the stock shot up 1,002.2% last week, while the S&P 500 SPX,
gained 7.9%.
