Stocks

GameStop (GME) shares surge as company sells $1B in stock

GameStop (GME) stock surged as high as 11% on the day as the company sells and raises $1 billion through stock.

The capital raises come amid rapid changes at the 37-year-old retailer, which was catapulted to new fame when Chewy founder Ryan Cohen, began investing in the company last year, taking a majority stake in it and becoming its chairman.

The videogame retailer, which earlier this year became the preeminent “meme stock” as rookie traders bid up its shares at the expense of big hedge funds had previously announced its plan to sell new stock “for general corporate purposes as well as for investing in growth initiatives and maintaining a strong balance sheet.”