GameStop just completed a massive sale of 75 million shares of its common stock. Here’s how that fits into the ongoing meme frenzy.
FULL VIDEO TRANSCRIPT BELOW:
I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Wall Street is coming off yet another set of record highs from the S&P 500 and Nasdaq ahead of the latest interest rates decision from the Fed. While markets have priced in a 99 percent chance the central bank holds rates steady, investors will closely listen for any clues on the Fed’s path forward.
And the first clue may have already been received with glee on Wall Street. The consumer price index is out. Headline inflation surprisingly came in unchanged for May versus a 0.3% increase the prior month. Total consumer prices are up 3.3% from a year ago. That’s slower from April but is still above the Fed’s 2 percent target.
In other news, there may be a winner of the recent return of the meme trade… and yes, it’s of course GameStop GME.
The company announced Tuesday that it completed a sale of a maximum of 75 million shares of its common stock. The move brought in $2.14 billion. GameStop says it will use the cash for general corporate purposes — with investments and acquisitions possible.
GameStop once again caught Wall Street’s attention after Keith Gill, known as Roaring Kitty, the father of the 2021 meme stock frenzy, returned to the public eye. He reiterated his GameStop thesis and his large position in the stock in a live stream on June 7th. Gill provided little new reasoning, but did show his position in a series of screenshots.
While the stock initially soared off Roaring Kitty’s bullish roar, GameStop plunged after surprising Wall Street with a larger than expected drop in quarterly sales.
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