Amidst the frenzy surrounding GameStop (NYSE: GME) stock, influential figure Andrew Tate, also known as ‘Top G,’ joined in by purchasing $100,000 worth of GME shares on June 7.
Tate committed to holding 2148.22 GME shares indefinitely, regardless of whether their value skyrockets or plummets to zero.
GameStop unexpectedly releases Q1 earnings ahead of schedule
In a surprising turn of events, GameStop reported its Q1 earnings, which were scheduled to be released on June 11.
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In the highlights of GameStop’s Q1 ’24 earnings report, the adjusted earnings per share came in at -$0.12, slightly below the estimated -$0.09, eliciting disappointment. However, revenue stood at $881.8 million, falling within the preliminary range of $872 million to $892 million.
The company also gave an update on its ongoing stock sales, saying it would sell an additional $30 million worth of stock on top of the 45 million share sale it had announced in May that raised more than $900 million.
This move might be pre-mediated so to decrease the GME stock price, making them more affordable, while increasing the offering, and making more GameStop shares available for traders.
In reaction to a weak Q1 report, GME stock reversed its gains of over 40% in the pre-market to a loss of almost 20%, decreasing its price from $46.55 as of the latest close to $37.50.
Tate’s purchase of GME stock is already at a loss
Because of pre-market losses, Tate’s latest purchase is already valued at nearly $20,000 less than the initial investment, bringing the current worth of Top G’s investment down to $80,000.
It is uncertain whether GME shares will rebound from this loss following Roaring Kitty’s scheduled YouTube live stream or continue to decline.
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