GameStop shares climb on completion of $933 million stock sale after meme frenzy

By James Rogers

The videogame retailer has benefitted from yet another 'Roaring Kitty'-fueled meme-stock rally

GameStop Corp.'s stock climbed 12.5% in extended trading Friday after the company announced the completion of a previously disclosed, roughly $933.4 million offering of equity capital through the sale of 45 million shares.

The move comes on the heels of a rally for shares of GameStop (GME) and AMC Entertainment Holdings Inc. (AMC) following the return of influential trader and analyst Keith Gill to social media. Gill, also known as "Roaring Kitty," was an important figure in the 2021 meme-stock frenzy.

GameStop intends to use the net proceeds from the at-the-market offering for general corporate purposes, which may include acquisitions and investments, the company said in a press release after market close Friday. The company initially disclosed the move in a regulatory filing on May 17.

Related: AMC, GameStop shares rally after registering biggest declines in a week

On May 14, GameStop's fellow meme-stock darling AMC said it had completed its own $250 million at-the-market equity offering.

The meme-stock rally appeared to have calmed down earlier this week, although shares of GameStop and AMC rallied Friday, a day after registering their biggest declines in a week during Thursday's session.

AMC shares ended Friday's regular trading up 6.4% after ending Thursday's session down 10.1% - their biggest decline since May 16, when the stock fell 15.3%. GameStop shares gained 3.7% Friday after losing 13.3% in Thursday's session - their biggest decline since May 17, when the stock dropped 19.7%.

AMC shares were up 2.1% in extended trading Friday.

Related: GameStop and AMC see meme-stock frenzy ease after Roaring Kitty-fueled rally

Victor Ricciardi, a visiting finance professor at Ursinus College and co-author of the book "Advanced Introduction to Behavioral Finance," has described the recent meme-stock rally as "an outlier event."

-James Rogers

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

05-24-24 1912ET

Copyright (c) 2024 Dow Jones & Company, Inc.