Shares of GameStop Corp. GME, +0.86% tumbled 9.7% in premarket trading Monday, after the videogame and consumer electronics retailer announced plans to sell up to 3.5 million shares of its common stock. The company plans to use the proceeds from the “at-the-market” offering, which represents about 5% of the shares outstanding, to accelerate its transformation, for general corporate purposes and to strengthen its balance sheet. Separately, GameStop said total sales for the first nine weeks through April 4 rose 11% from the same period a year ago, including 5.3% growth in February and an 18% rise in March. GameStop said sales were negatively impacted by temporary store closures and other mandated restrictions as a result of the COVID-19 pandemic, resulting in a 13% decrease in the store base from the same period a year ago. The stock’s pullback comes after it rose 5.8% last week, to snap a two-week decline of 31.6%. Over the past three months, the stock has rocketed 1,002.2% through last week, while the S&P 500 SPX, +1.18% has gained 7.9%.
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