GME: GameStop Stock Soars 25% After Company Raises $933M from Share Sale

Meme stocks are alive and well and ready to react to any news, either good or bad. In this case, it was good.

• GameStop stock GME surged 25% on Tuesday, closing at $23.78 a share with a valuation of $7.3 billion. Traders piled into the video game retailer after a Friday announcement which said that the company raised $933 million in a controversial share sale of 45 million shares. The delayed response in the meme stock comes after equity markets took a Monday break for Memorial Day.
• It’s a volatile month for GameStop — the stock relived the adrenaline rush from 2021 when Roaring Kitty made a surprise comeback after roughly three years of online silence. But then share price took a dive and erased just about all gains accumulated from that froth-inducing event. Now, after Tuesday’s powerful rally, shares of GameStop are looking into a monthly gain of just under 120%, or nearly $4 billion added to the market cap.
• Couple weeks back, GameStop reported disappointing preliminary results for the quarter ended May 4. It expects a loss of $27 million to $37 million for the time span on sales of $872 million to $892 million. The numbers didn’t meet Wall Street’s consensus calls for $1.045 billion in sales. GameStop’s closest meme stock peer, AMC AMC, didn’t get the same special treatment on Tuesday with its shares up less than 1% on the day.