Record Stock Sales From Money-Losing Firms Ring the Alarm Bells
- AMC, GameStop lead troubled companies in flooding the market
- Glut of shares provides latest evidence of elevated enthusiasm
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If you think a rush by companies to sell their shares is a bad omen for the market, imagine a scenario where most of the sales come from firms that don’t make money.
It’s happening now. Since the end of March, almost 100 unprofitable U.S. companies, including GameStop Corp. and AMC Entertainment Holdings Inc., have raised money through secondary offerings, twice as many as coming from profitable firms, according to data compiled by Bloomberg.