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Tag: GME News

  • GameStop Corp. (GME) stock tumbles in Pre-Market today: Why did It happen?

    GameStop Corp. (GME) stock tumbles in Pre-Market today: Why did It happen?

    Shares of GameStop Corp. (GME), a leading gaming and entertainment platform, were tumbling in today’s pre-market trading session after the announcement of an equity offering by GME stock. GME price saw a downtrend of 13.03% to drop at $166.50 a share as of this writing. GME was green in the previous trading session and closed with a 0.86% gain with $191.45 per share price. GME also announced the Preliminary sales results of the first nine weeks of 2021 today. Let’s have a deep look at current scenarios.

    Equity Offering Plan:

    GME today on 5th April 2020 filed the prospectus supplement with U.S. Securities and Exchange Commission according to which GME stock would be able to sell a total of 3.5 million shares of its common stock from time to time via “at-the-market” equity offering program. The main purpose of this offering is to strengthen the balance sheet of GameStop by accelerating the process of its transformation and other general corporate purposes. GME would be offered by Jefferies LLC and its Sales price is subjective to the prevailing sale price in the market.

    Sales Performance of First Nine Weeks by GME stock

    The First nine-week period ends on April 4, 2021, and in this period, GME recorded an 11% increase in its global sales while as of February 27, 2021, these global sales were 5.3% high as compared to the four-week period of 2020 ended on February 29.18% increase in the global sales was observed in the last five weeks ended on April 4, 2021, as compared to the same period in the previous year.

    The restrictions imposed by the government due to COVID-19 have negatively impacted the GME in its operations across 14 countries. 13 % decrease in the store base in the Nine-week period of 2021 due to store optimization effort by GameStop mainly owes to these COVID-19 restrictions.

    Conclusion:

    Despite an increase in the global sales of GME stock in the latest nine-week period, GME stock is falling in response to the announcement of an equity offering program by GameStop. The previous record shows that GME stock soared over 1000% in the past three months. Hence GME stock can be a good bet in the long run but short-term investors need to do a lot of research before taking any decision.

  • GameStop (GME) Stock Continues to Spike Days after the Appointment of Ryan Cohen

    GameStop (GME) Stock Continues to Spike Days after the Appointment of Ryan Cohen

    Is the bull run going to end anytime soon, or should you invest in GME now?

    Investors are having a good time if they have invested in GameStop (GME) stock earlier this month. The average trading volume is around 15.8 million—which shows that investors are betting highly on GME.

    The day traders are helping the stock to keep on pumping in the recent trading sessions. As we write this, GME has soared over 51% trading at $65—in the range of a 52-week high.

    But will the bullish run continue or will the stock retrieve in the coming days? The answer is that after a heavy push the day traders will take their profit and move out; GME is poised to drop in the next few days. But what does this mean for the long-term investors? Smart investing is when the price is dropping—buying the stock at a low could increase the profit margin.

    What’s happening?

    The reason for the recent bull is mainly powered by Citron backing away from the live stream. Earlier this week, Citron was to go live to discuss that why GameStop (GME) was heading back to $20. But later, the company pulled back due to some hacking concerns on Twitter, ending in bulls for GME.

    For now, this Twitter spat may continue to fire GME stock but ultimately things will cool down in a while.

    Talking about the operational depth of the company—in the Q3 report—its comparable-store sales soared by 16.5% for Nov. 2020. While the total net sales increased from $747.6 million to $791.1 million—from fiscal Nov. 2019.

    Moreover, the basic push that can drive GameStop in the long-term is its business performance. That is improving which is a good sign. Another important factor is the signing of Ryan Cohen as a member of CME’s board of directors. Ryan, who is the co-founder of the famous pet food retailer, Chewy will join GameStop’s board along with two other Chewy executives.

    Reportedly, Chewy’s co-founder wants things to accelerate at GameStop and he wants the company to adopt a more online strategy. With the three board seats on his side, Cohen can target this goal with more authority.

    The company updated that it gained 3.1% more sales during this year’s nine-week holiday season. This was good for the company because people were more driven towards e-commerce and relied more on online sales.

    In a recent SEC filing, it was unveiled that three directors sold GME’s stock with a total value of $2.7 million, while another director sold stock worth $17 million. Despite the insider selling of GME shares, the stock continued to jump, which can be a good sign.

    Conclusion

    Recently, GameStop (GME) has reported the growth of its sales which is good to start the new year with continuing growth. With the opening of stores and things coming to normal, we can expect the stock to perform well in this year. Most importantly, the appointment of Cohen is a very big move. If he intends to move towards the online system, things will get better for the company in the long-term.