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posted by Fnord666 on Friday June 11, @01:04AM   Printer-friendly
from the sharp-pointy-lines dept.

GameStop stock falls sharply amid 5M-share sales plan, SEC investigation:

GameStop's quarterly earnings report, released last night, contained relatively good news for the embattled retailer, including a smaller-than-expected operating loss and the company's first year-over-year increase in quarterly revenues in years. But GameStop's heavily inflated stock price is down significantly in morning trading on news that the company plans to sell more shares and the announcement that it is cooperating with a Securities and Exchange Commission investigation into the "meme stock" phenomenon.

In what CEO George Sherman called a "strong start to the year," GameStop's net sales were up over 25 percent to $1.3 billion in the fiscal quarter ending on April 30. That's despite "a roughly 12 percent reduction in the global store fleet due to our strategic de-densification efforts and the continued store closures in Europe during the quarter due to the COVID-19 pandemic."

Previously:
GameStop (The Stock) and GameStop (The Retailer) Continue to be Worlds Apart
GameStop Shares Rise, Fall and Rise Again in Roller-Coaster Day of Trading
The Complete Moron's Guide to GameStop's Stock Roller Coaster


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  • (Score: 0) by Anonymous Coward on Saturday June 12, @04:37AM (1 child)

    by Anonymous Coward on Saturday June 12, @04:37AM (#1144488)

    Did anyone here read the article?

    "news that the company plans to sell more shares"

    So if the company sells more shares these shares get created. That is there are now more outstanding shares. The company selling more shares is no different than if the retail investors sold those shares, it will still drive the price down just the same. The shares will go on the market from the company and the hedge funds will buy its shares from the company.

    Look up Tops shipping. They keep issuing more shares. This drives price down. They do a reverse stock split reducing the number of outstanding shares and increasing price per share. Then they sell more shares again. Price drops again. Repeat. It's been going on for many years. It's quite the scam.

  • (Score: 2) by Revek on Saturday June 12, @10:01PM

    by Revek (5022) on Saturday June 12, @10:01PM (#1144694)

    Shares are already sold. A drop in the bucket really.

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