In a separate filing the same day, the company said it was offering an indeterminate amount of Common Stock, Preferred Stock, Depositary Shares, Warrants, Rights and Units. In ano

GameStop stock plunged more than 20% after the company disclosed that it expects a large drop in sales for this year’s first quarter and will be selling off millions of shares — bringing what many hoped would be a major revival of the 2021 meme stock rally to a grinding halt.

GameStop expects first-quarter net sales to drop from a year ago, as customers transition to buying video games and collectibles online, while the retailer largely relies on brick and mortar stores.

GameStop Corp.’s stock fell 11.8% early Friday, after the videogame retailer and key meme stock offered guidance for the first quarter that showed a narrower-than-expected loss but sales that lag consensus.

Swings in GameStop and AMC shares revived meme trading while stinging short sellers in the process. Still, these investors betting the shares will fall are not changing their tune.

GameStop Corp. and AMC Entertainment Holdings Inc. were set to snap a two-day rout that erased about $7 billion in value, amid further signs of this week’s meme-stock frenzy fading.

This is breaking news. Please check back for updates. Shares of GameStop tumbled 10% in premarket trading Friday after the video game retailer said it plans to sell securities and reported preliminary results that showed a sales decline in the first quarter.