Jim Cramer, the host of CNBC's "Mad Money," who had previously labeled GameStop GameStop Corp. (NYSE:GME) as "arguably the worst" company in America, has now expressed a positive outlook for the company.
What Happened: On Friday, Cramer took to X, formerly Twitter, and said, "Gamestop now has enough cash to become something other than Gamestop. Congratz!"
His statement came after GameStop announced the conclusion of its previously disclosed at-the-market equity offering program, under which the company successfully sold 45 million shares. Gamestop generated total gross proceeds of $933.4 million. This implies an offering price of approximately $20.74 per share.
Gamestop now has enough cash to become something other than Gamestop. Congratz!
— Jim Cramer (@jimcramer) May 24, 2024
This came after Cramer earlier this month predicted GameStop could use the stock surge to raise capital through public offerings. "GME would be nuts NOT to authorize and at the money sell program to raise cash and reinvent," he said.
Why It Matters: Cramer previously urged investors to sell their GameStop shares, expressing doubts about the company's stock price reaching $64 or even $44. "I can't see Gamestop trading at $64 or even $44. The responsible move is to sell, sell, sell."
March saw GameStop releasing its fourth-quarter revenue figures, totaling $1.794 billion, which fell short of analyst projections pegged at $2.05 billion. The company's earnings per share stood at 22 cents, below the anticipated 29 cents per share.
However, despite GameStop's disappointing quarterly results, management refrained from providing any explanation of the underperformance during the conference call.
Commenting on the situation at the time, Cramer said, "This is a situation where the best company in America has no conference call, Berkshire Hathaway, and arguably the worst, GameStop. Everybody else is in between."
GME Price Action: GameStop shares ended Friday's regular session 3.71% higher at $19, while the company's shares soared 12.89% in the after-hours session at $21.45.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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