SkyBridge's Scaramucci Tells GameStop Investors To 'Be Very Careful' After Offering

GameStop Corp. GME announced an at-the-market equity offering program in which the company can sell up to 3.5 million shares. 

The company said it intends to use the net proceeds from any sales of its common stock under the offering to further accelerate its transformation as well as for general corporate purposes and further strengthening its balance sheet.

Scaramucci On GameStop's Offering: On CNBC's "Squawk Box," Anthony Scaramucci, founder and co-managing partner of SkyBridge Capital and former Trump administration official, was asked about GameStop.

"I just think it's very dangerous for the retail investors to be playing these names," Scarramucci said. "This is another warning light for investors. You don't know all of the information that I think that you need to know to be doing these trades and I think you just have to be very careful in these situations." 

Why It Matters: GameStop has made headlines repeatedly in 2021 as retail investors continue to try to push the price higher. The stock was heavily shorted and became a target for members of r/wallstreetbets, a popular subreddit in which members discuss stock and option trading. 

GME Price Action: GameStop shares were down 7.13% at $177.80 at last check Monday. 

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