The GameStop Saga Has Reached A New Chapter
It seems like the story of GameStop's stock is fittingly, much like an anime game, in that it can only be told in sagas and the people doing all the buying live exclusively on Reddit. When we last checked in on our heroes, GameStop's stock was falling after the ne'er do-wells over at Robinhood froze the stock in an effort to stop the squeeze because of something, something, market regulations. (They work with the company Reddit was trying to squeeze.) The GME boom had slowed and was replaced by Dogecoin as Reddit's troll du jour, and it seemed as if GME's plummet to its initial pre-boom holdings would be inevitable.
But now it seems like we've reached a new chapter in the saga. Shares of GME rose more than 50% as of Thursday (there's no telling where it could be right now), and that was after GameStop itself disclosed that it could be selling equity shares on Wednesday. There is no rhyme or reason to GameStop's sudden ascent other than "stonks to the moon!" and we've kind of given up trying to figure out any other coherent explanation.
What's even more incredible, though, is how GameStop might look to parlay their stock's rise into a transformation for the company. GameStop wrote in its SEC filing:
"Since January 2021, we have been evaluating whether to increase the size of the ATM (at-the-market) Program and whether to potentially sell shares of our Class A Common Stock under the increased ATM Program during the course of fiscal 2021, primarily to fund the acceleration of our future transformation initiatives and general working capital needs."
This means they're looking to offer up a secondary stock option, something you wouldn't necessarily do if the plan was to fold up your business-box and go home. It might be rough at first, but it seems increasingly likely that GameStop, a company Business Insider dubbed "the next Blockbuster," might just survive yet (or proverbially "bust out of their block" if you will) and what makes it even more wild is that it is all thanks to the wily rascals of Reddit who just wanna meme and save gorillas.
Again, the story of GameStop is not over. It could be that they transform the retail spaces into a clubhouse for gaming (sort of like how some comic book stores currently operate) or that they transition into selling GameStop TVs and GameStop PCs. It could also be that it's all for naught, and GameStop crumbles like a cookie being squeezed by Goku. We still can't know, but that makes it all the more fun to be there to tune in next time.
Top Image: Wiki Commons