GameStop Stock Is Sliding Friday: What's Going On?

GameStop Corp (NYSE:GME) shares are trading lower Friday morning. The company filed a prospectus with the Securities and Exchange Commission to sell an unspecified amount of various securities in the future. .

What To Know: The shelf registration, filed on October 2, allows the video game retailer to offer and sell securities such as Class A common stock, preferred stock, debt securities and warrants from time to time. This gives the company flexibility to raise capital more quickly when needed.

According to the filing, the net proceeds from any future sales would be used for general corporate purposes, which could include investments and potential acquisitions. The prospect of additional shares potentially entering the market, which could dilute existing shareholders’ value, has put downward pressure on the stock price in early trading.

Benzinga Edge Rankings: Despite the stock’s dip, Benzinga Edge stock rankings highlight an exceptionally strong Growth score of 99.15 for the company.

GME Price Action: GameStop shares were down 2.98% at $26.41 at the time of publication Friday, according to Benzinga Pro. The stock is trading within its 52-week range of $20.30 to $35.81.

The stock is above its 50-day moving average of $23.93, indicating a potential bullish trend, but it is below both the 100-day and 200-day moving averages at $25.06 and $25.85, respectively.

This positioning suggests that while short-term momentum may be positive, the longer-term trend remains uncertain, with key support likely around the 50-day moving average.

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How To Buy GME Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in GameStop’s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

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