GameStop shares fall 20% after it files to sell additional stock, says first quarter sales dropped
GameStop shares tumbled 19.7% Friday after the video game retailer said it plans to sell additional shares and reported preliminary results that showed a drop in first-quarter sales.
In a new regulatory filing, the video game retailer said it will sell up to 45 million class A common shares in an at-the-market offering. The sale comes after GameStop shares surged earlier this week in a brief revival of the meme stock trade.
Meanwhile, in a separate statement, GameStop said it now expects net first-quarter sales in the range of $872 million to $892 million, down from around $1.24 billion in the same quarter last year. Two analysts polled by FactSet said they expected a first-quarter revenue of around $1 billion.
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