.September 11, 2024 Wednesday 04:25:00 PM

GameStop (NYSE:GME) saw its stock price drop over 13% after announcing plans to issue 20 million new shares. Despite a revenue decline in Q2 to $798.3 million from $1.16 billion last year, the company reported a net income of $14.8 million, a significant improvement from a $2.8 million loss in the previous year.

The retailer aims to raise capital for general corporate needs, including potential acquisitions and investments aligned with its strategy. GameStop continues to face challenges with the shift to digital game sales and underperformance in physical stores, but reduced operating costs have contributed to its improved financial performance.

The stock’s volatility has been heightened by the return of Roaring Kitty to social media, sparking renewed investor interest. However, unpredictable swings persist, reflecting the ongoing uncertainty surrounding GameStop’s future performance.