GameStop (NYSE:GME) shares soared in after-hours trading after the video game retailer announced that it had raised $933.4 million through an at-the-market equity offering during the recent meme stock rally. Indeed, the surge in GameStop shares revived memories of the 2021 short squeeze, which was sparked by retail investor Keith Gill, aka Roaring Kitty.
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The firm sold 45 million shares of its common stock, which was the maximum allowed under the program, and plans to use the funds for general corporate purposes. GameStop already had a large cash pile of $1.2 billion with only $17.7 million in long-term debt. Undoubtedly, this move will give CEO Ryan Cohen more room to invest the firm’s funds in other companies.
GameStop Technical Analysis
Using TipRanks’ technical analysis tool, the indicators seem to point to a positive outlook for GME stock. Indeed, the Overall Consensus section pictured below shows that 11 indicators are Bullish, compared to four Neutral and seven Bearish indicators.
