Stocks

GME Stock: GameStop surges on $551 Million stock sale

GME Stock: GameStop surges on $551 Million stock sale

GameStop (GME) sold 3.5 million additional shares, raising $551 million to speed up the company’s e-commerce transformation. GME shares soared more than 10% on Tuesday’s open. This brings shares up nearly 750% this year.

Late in January, a group of Reddit-obsessed retail traders orchestrated bets on highly shorted securities, resulting in a huge short squeeze in GameStop, which saw its stock rise 400 percent at one point. At the start of 2021, the stock of the brick-and-mortar chain was trading for less than $20 per dollar.

Ryan Cohen, an activist investor and board member who was also a co-founder of Chewy, is spearheading the company’s transition to e-commerce.

GameStop’s CEO, George Sherman, revealed last week that he would step down on July 31. The board is leading a hunt to find CEO applicants who will help the company move on in the next step of its transition, according to the statement.