Recently, the Meme stock craze has surged again, with Game Station releasing its Q1 earnings early and announcing the possibility of another stock sale.
In pre-market trading on Friday, Game Station’s GME stock plunged by as much as 14%, after previously soaring nearly 36%. Reports suggest Game Station may sell up to 75 million Class A shares.
The latest SEC filing from GME indicates an application to sell up to 75 million Class A shares, with proceeds intended for operational funds and general corporate purposes. The company had previously sold 45 million shares, yielding approximately $933.4 million.
On the same day, Game Station announced its Q1 financial results, with revenue of $882 million, lower than the $1.237 billion in the same period last year and below the estimated $995.5 million. Hardware and accessories sales dropped by 30.4% to $505.3 million, while software sales fell by 29.1% to $239.7 million.
The net loss was $32.3 million, compared to a net loss of $50.5 million in the same period last year. After the earnings announcement, the stock turned from gains to losses in pre-market trading.
During this round of the Meme stock frenzy, GME’s stock price surged, with “big brother” Keith Gill revealing significant investments in the company. Gill also plans to conduct a YouTube livestream on Friday noon, which is expected to increase GME’s volatility even further.
