GameStop rallied early Tuesday after announcing a massive stock sell-off Friday. AMC Entertainment (AMC), Blackberry (BB) and other meme stocks followed GME shares higher.
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Stoppage of play (GME) announced Friday that it made $933.4 million by selling 45 million shares of common stock. The sale was part of a program to offer shares at market price which was first announced on May 17. GameStop plans to use the proceeds for general corporate purposes, which may include acquisitions and investments, according to the filing.
On May 17, the company also filed a shelf registration statement with the SEC, which allows it to issue more shares for sale at a later date in one or more offering rounds.
That filing said GameStop’s charter allows it to issue up to 1 billion shares of common stock and up to 5 million shares of preferred stock. There were 306.187 million shares of GME common stock outstanding as of May 4.
GameStop stock, meme stock
GME stock soared more than 24% premarket Tuesday following the filing. GameStop is expected to bounce back above last week’s high of 23.40 at the open. However, GME stock will still trade well below its May 14 high of 64.83, which marks its highest level since the meme rally of 2021. GameStop soared 71% in May. But GME stock is up just 8.4% year to date.
AMC Entertainment meme stock jumped 5% early Tuesday. AMC stock has soared 65.2% this month, MarketSurge charts show. Still, AMC is down about 21% in 2024 despite the recent meme rally.
BlackBerry shares rose 1.4% Tuesday morning. BB stock pared its May gains to just over 3%. Shares have fallen 18.6% so far this year.
Galactic Virgo (SPCE) rebounded with a 4.7% premarket jump on Tuesday. Koss (KOSS) increased by 2.6%.
GameStop, AMC and others meme stocks vaulted on May 13 after Keith Gill, which sparked the stock market rally during the pandemic, returned to social media after a three-year hiatus. The rally in meme stocks quickly faded last week.
You can follow Harrison Miller for more stock news and updates on Twitter. @IBD_Harrison
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