GameStop stock sinks to lowest level since August 2024

What happened: GameStop (GME) shares fell astir 11% connected Monday, touching arsenic debased arsenic $19.05 per share, their lowest intraday levels since August 2024, according to Yahoo Finance's AlphaSpace data.

What's down the move: The determination comes aft the video crippled retailer announced plans for a backstage speech of $1.4 cardinal successful convertible notes for communal banal arsenic a mode to wage down its indebtedness without utilizing cash. Investors perceived the determination arsenic diluting existing shareholders.

What other you request to know: GameStop shares are down 3% year-to-date.

The banal is down astir 27% since aboriginal May, astir the clip the institution made an uncollected connection to bargain (EBAY).

The online marketplace eBay (EBAY) rejected the video crippled retailer's $56 cardinal bid. Questions astir however GameStop would wage for the deal sent GameStop shares lower.

Investors speculated that the institution would request to instrumentality connected indebtedness and dilute shares by selling banal to rise the funds.

The unsolicited bid that period prompted capitalist Michael Burry to merchantability his full presumption successful GameStop.

Ines Ferre is simply a elder concern newsman for Yahoo Finance. Follow her connected X astatine @ines_ferre.

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