GameStop (NYSE:GME) stock is taking a beating on Wednesday after announcing an at-the-market (ATM) program that confused some retail investors over on Reddit.
News of the GME stock ATM program comes from a filing with the U.S. Securities and Exchange Commission (SEC). In this filing, the company goes into detail about what that program could mean for it.
Here’s a quick section from the SEC filing covering the GME stock ATM program.
“We utilize cash generated from operations, cash on hand and funds available to us under our revolving credit facility to fund our operations and in 2019 and 2020, Reboot transformation initiatives. We may also fund our operations and potential costs related to the acceleration of future transformation initiatives, such as product catalogue expansion efforts, as circumstances warrant, from other sources of capital, including sales of our equity and debt securities. In December 2020, we established an ‘at-the-market’ offering program (the ‘ATM Program’) that provides for the sale of shares of our Class A Common Stock having an aggregate offering price of up to $100 million, from time to time, through Jeffries LLC, as the sales agent under the ATM Program.”
The SEC filing mentioning the ATM program for GME stock came out shortly before the release of the company’s Q4 earnings report. That report also didn’t do it any favors with it missing Wall Street’s estimates.
Investors in GME stock didn’t learn anything extra during the company’s conference call, either. The call was short and didn’t include go over much. There was also no Q&A session for investors.
All of this led to confusion for some Reddit users about what the GME stock ATM program means for them. One Redditor came to their rescue with a full breakdown of what the ATM program means and how it will affect investors on GME stock.
Following the ATM program and earnings news, GME stock is down 21.8% as of Wednesday morning. However, the stock is still up 723.5% since the start of the year.
GME isn’t the only stock that Reddit has been taking an interest in of late.
There are plenty of companies that members of the online forum single out for investing. That includes an interest in penny stocks, marijuana stocks, and NFT stocks. Interested investors can learn more at the links below.
More Reddit News
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- Avoid Sundial Stock As It’s Running on Reddit Hype
- NFT Stocks: Reddit Chatter Lifts TKAT, OCG, YVR and IMTE Stocks
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.