Why GameStop Is Trading Lower Today

GameStop Corp GME is trading lower Thursday morning after the company announced its first-quarter financial results, a share offering — and SEC probe. 

What Happened: GameStop reported an earnings loss of 45 cents per share, which beat the estimate for a loss of 83 cents per share. The company reported quarterly revenue of $1.28 billion, which beat the estimate of $1.16 billion.

GameStop announced that it may sell up to 5 million shares from time to time in at-the-market offerings. It intends to use the proceeds for general corporate purposes, investing in growth initiatives and maintaining its balance sheet.

GameStop appointed former Amazon.com Inc AMZN executives Matt Furlong and Mike Recupero as CEO and CFO, respectively. 

The company said it is fully cooperating with the SEC after the commission contacted GameStop in May for documents and other information related to its stock.

Related Link: GameStop Discloses SEC Probe Into Trading of Its And Stocks Of 'Other Companies;' AMC, Koss, BlackBerry Dip

GME Price Action: GameStop has traded as high as $483 and as low as $3.77 over a 52-week period. 

At last check Thursday, the stock was down 8.45% in premarket trading at $277.

Photo by Mike Mozart from Flickr.