Seize the opportunity of a surge to “cash out”. Has the retail stock market come to an end?

After the madness of the previous two days,$GameStop (GME.US)$It plummeted 20% intraday on Friday. According to news, GameStop released its first quarter earnings report and announced the sale of up to 45 million Class A shares.

GameStation's net sales in the first quarter were 882 million to 892 million US dollars, down from 1,237 million US dollars in the same period last year, but losses have narrowed. The net loss was between 27 million and 37 million US dollars, compared to 50.5 million US dollars in the same period last year.

At the same time, the company also stated that it has signed an open market sales agreement with Jefferies LLC and may sell up to 45 million Class A shares without significant changes in the financial situation.

After the news was released, GameStop's pre-market stock price fell, largely recovering the 179% increase at the beginning of this week. It fell 30% this Thursday, and fell 43.2% in the past two trading days, the biggest two-day decline since 2021, but the cumulative increase was more than 50% this week.

GME's loyal fans have always touted GME's clean balance sheet: almost zero debt and nearly $1 billion in cash.

Michael Pachter of Wedbush, an analyst who is outspoken and skeptical about GME, said that if GME issues shares, it may send a signal to investors, indicating that the company admits that it is time to cash out.

As of press release,$AMC Entertainment (AMC.US)$With a decline of more than 3%, the stock also joined the recent turbulent trend. Earlier this week, AMC used the opportunity of rising stock prices to exchange shares to reduce debt, and said that it had completed the previously announced stock issuance, clearly weakening the intensity of transactions driving this week's gains.

Giacomo Pierantoni, head of data at Vanda Research, said:

Retail investors' purchases of GameStop and AMC have been drastically reduced. The capital inflow to GameStop was about $5 million in the past two days, while AMC's capital inflow was “almost zero” on Thursday.

The reason for the sharp rise in retail group stocks in this round is the return of retail leader Keith Gill, who set off such a stock frenzy in 2021 and then disappeared. On May 13, local time, Keith Gill posted a meme image on X. The picture shows a person leaning forward and getting serious while playing a game. This tweet is suspected of once again sounding the horn of battle.

edit/new