GameStop rallied early Tuesday after announcing a massive stock sale on Friday. AMC Entertainment, Black Berry and other meme stocks followed GME shares higher.
GameStop on Friday announced it made $933.4 million by selling 45 million shares of common stock. The sale was part of an at-the-market equity offering program that was first announced May 17. GameStop plans to use the proceeds for general corporate purposes, which may include acquisitions and investments, according to the filing.
The company on May 17 also filed a shelf registration statement with the SEC, which allows it to issue more stock to sell at a future date in one or more offering rounds.
That filing noted that 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 Action
GME stock soared more than 20% at the open Tuesday, rebounding near last week's high of 23.40. However, GME stock will still trade well below its May 14 high of 64.83, which marked its highest level since the 2021 meme rally. GameStop bolted 71% higher in May. But GME stock is only up 8.4% year to date.
Fellow meme stock AMC Entertainment swung 2.5% higher Tuesday. AMC stock spiked 65.2% this month, MarketSurge charts show. Still, AMC is down about 21% in 2024 despite the recent meme rally.
BlackBerry shares climbed 1.4% Tuesday morning. BB stock has pared its gains from May to just over 3%. Shares tumbled 18.6% so far this year.
Virgin Galactic rebounded with a 7% jump Tuesday. Koss was flat in early trade Tuesday after advancing 2.6% premarket.
GameStop, AMC and other meme stocks vaulted on May 13 after Keith Gill, who sparked the meme stock rally during the pandemic, made his return to social media after a three-year hiatus. The meme stock rally quickly faded by last week.
You can follow Harrison Miller for more stock news and updates on Twitter @IBD_Harrison
