{"id":1469944,"date":"2024-06-07T12:27:04","date_gmt":"2024-06-07T16:27:04","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1469944"},"modified":"2024-06-07T12:27:04","modified_gmt":"2024-06-07T16:27:04","slug":"gamestop-tumbles-after-dismal-earnings-announces-equity-offering-ahead-of-roaring-kitty-event","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/gamestop-tumbles-after-dismal-earnings-announces-equity-offering-ahead-of-roaring-kitty-event\/1469944\/","title":{"rendered":"GameStop Tumbles After Dismal Earnings, Announces Equity Offering Ahead Of ‘Roaring Kitty’ Event"},"content":{"rendered":"

GameStop Tumbles After Dismal Earnings, Announces Equity Offering Ahead Of ‘Roaring Kitty’ Event<\/span><\/p>\n

\n

Redditors and momentum chasers are being led into a burning building by ‘meme’ stock trader Keith Gill’s (aka Roaring Kitty) on the latest pump as\u00a0GameStop shares erase overnight gains following the announcement of sharp revenue declines in the first quarter and an\u00a0“at-the-market offering” program to sell more shares.<\/p>\n

The grift continues:<\/p>\n

*GAMESTOP MAY SELL UP TO 75M SHARES OF CLASS A STOCK<\/p>\n

\u2014 zerohedge (@zerohedge) June 7, 2024<\/a><\/p>\n

Let’s begin by describing the source of the latest pump.\u00a0Roaring Kitty’s YouTube live event,\u00a0slated for 1200ET, was announced<\/a> on Thursday afternoon, which sent shares doubling from around $26 in cash session to as high as $66 in after-hours trading.<\/p>\n

In premarket trading, shares were above the $60 handle, then crashed 40% to around $38 following the news that GME filed an\u00a0at-the-market offering to sell 75 million shares of the company’s Class A common stock.\u00a0<\/p>\n

<\/a><\/p>\n

Jefferies is the ‘Sales Agent’ on the deal.<\/p>\n

<\/a><\/p>\n

Earlier, GME reported\u00a0first-quarter results showing net sales of\u00a0881.80 million, down from $1.237 billion year over year. Net sales missed Wall Street’s\u00a0consensus estimate of $995.30 million.\u00a0<\/p>\n

GME also reported an EPS loss of 12 cents, missing the average estimate of 9 cents.\u00a0According to Reuters, this miss\u00a0highlights customers’ shift to online video games and collectibles, while the retailer continued to rely on its brick-and-mortar stores.\u00a0<\/p>\n

Just weeks ago, during another pump by Gill,\u00a0GME announced\u00a0it sold 45 million shares of common stock<\/a> for about $933.4 million. CEO Ryan Cohen is effectively using Gill’s pumps to dump millions of shares into mom-and-pop retail, chasing momentum.\u00a0<\/p>\n

momentum chasers are literally giving their money to Ryan Cohen<\/p>\n

\u2014 zerohedge (@zerohedge) June 7, 2024<\/a><\/p>\n

At 1200 ET, Gill will have to re-explain his investment thesis in GME, as first-quarter earnings show a sharp decline, and Cohen is dumping endless shares.\u00a0<\/p>\n<\/p>\n

Meanwhile, reports suggest that\u00a0ETrade might take action against Gill<\/a>,\u00a0and at least one securities regulator is currently investigating him for potential stock manipulation.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nFri, 06\/07\/2024 – 08:27<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/gamestop-crashes-after-dismal-earnings-announces-equity-offering-ahead-roaring-kitty-event<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

GameStop Tumbles After Dismal Earnings, Announces Equity Offering Ahead Of ‘Roaring Kitty’ Event Redditors and momentum chasers are being led into a burning building by…<\/p>\n","protected":false},"author":0,"featured_media":1469945,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1469944","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1469944","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1469944"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1469944\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1469945"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1469944"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1469944"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1469944"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}