GameStop's on the rise again. What's causing that?

GameStop's stock surged over 25% in pre-market trading following their announcement of raising $933 million from selling 45 million shares. Despite the initial drop in share price when the sale was first announced, the stock has shown remarkable resilience, climbing over 98% in the past month. This fluctuation is partly driven by battles between retail investors and short sellers, particularly influenced by social media figures like Roaring Kitty. However, concerns remain about GameStop's long-term viability as its physical sales continue to decline, with analysts skeptical about the company's future despite the recent financial maneuvers.

The specific event that caused GameStop stock to surge more than 25% in pre-market trading was the company's announcement that it had successfully raised $933 million from the sale of 45 million common shares of its stock26. This significant influx of capital was the primary driver behind the stock's sharp increase in value during early trading.