GameStop shares jump after Reddit favorite hits $ 551 million in stock sales

GameStop’s share price rose in expanded trading on Monday after the video game retailer said it sold 3.5 million additional shares and raised $ 551 million to accelerate the company’s e-commerce transformation.

The stock, favored by the Reddit retail industry, rose 10% in after-hours trading after gaining nearly 12% on the day. Stocks are up nearly 800% this year.

GameStop announced the “at-the-market” share offering in early April, which was seen as a way to capitalize on its latest high-profile rally that made Wall Street history.

In late January, a group of Reddit-owned retailers coordinated trading in sharply shortened stocks and sparked a massive short squeeze on GameStop, whose stocks were up 400% at one point. The brick and mortar retailer was trading at less than $ 20 per share in early 2021.

The company is currently in the midst of a shift to e-commerce, led by activist investor and board member Ryan Cohen, the co-founder of Chewy.

Last week, GameStop announced that its CEO George Sherman will be stepping down until July 31st. The board is conducting a search for CEO candidates who can accelerate the next phase of the company’s transformation.

The company also hired former Amazon and Google CEO Jenna Owens as its new chief operating officer.

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