GameStop stock tanks on move to issue shares, quarterly sales decline

GameStop's stock plummeted by up to 30% following its announcement to issue 45 million new shares and a significant drop in quarterly sales from $1.24 billion the previous year to an expected $872 million-$892 million. The move comes amid broader issues within the company, as it struggles with business direction and investor confidence, exacerbated by volatile stock prices since the 2021 meme stock phenomenon. This financial strategy aligns with similar actions by AMC Entertainment, which also recently raised capital through stock sales.