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GameStop Loses Luster in Earnings Aftermath, Possible Share Sale

  • Stock falls 34% Wednesday, its steepest decline since Feb. 4
  • GameStop mulls offering after earnings miss expectations
GameStop Rally Hits New Extremes As Short Sellers Surrender
Photographer: David Paul Morris/Bloomberg
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GameStop Corp., the roller-coaster stock championed by Reddit-based traders, tumbled Wednesday in the aftermath of disappointing fourth-quarter earnings and the possibility it may sell additional shares to take advantage of soaring demand.

Shares of the video-game retailer fell 34% to $120.34 in New York Wednesday, its steepest decline in seven weeks, after reporting profit in the period ended Jan. 30 of $1.34 a share, excluding some items. That compared with an average projection of $1.43 from analysts.