GameStop shares jump 15% after $933 million stock sale

Shares in GameStop gained on Tuesday after the company announced Friday that it had made $933 million from a stock sale.

ShanonG ShanonG
May 28, 2024 - 21:10
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GameStop shares jump 15% after $933 million stock sale

A trader works as a screen displays the trading information for GameStop on the floor at the New York Stock Exchange on May 15, 2024.

Brendan McDermid | Reuters

GameStop shares soared Tuesday after the company announced that it had made around $933 million from a stock sale.

Shares in the video game retailer were up about 15%. The meme stock fell more than 14% last week, but month to date, it's still up more than 90%.

GameStop said Friday it made close to $933.4 million by selling 45 million common shares.

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The company did not disclose what price the shares were sold at, but said the transaction was a so-called "at-the-market" offering. This means shares were sold at market price and not a predetermined one. Plans for the stock sale had been announced earlier this month, amid a resurgence of the meme stock craze.

The sale comes after the social media account Roaring Kitty, which was behind the 2021 short squeeze of companies including GameStop, posted online again for the first time since that period.

GameStop shares surged dramatically as the stock got caught up in the frenzy, reaching a high of $64.83 on May 14, up more than 200% from the close of May 10. Shares fell again shortly afterward, closing more than 50% down from the highs just days later, on May 16.

— CNBC's Yun Li contributed to this report.