GameStop plans to sell up to 45 million shares, wiping more than $8 billion off market value in three days

Shares of GameStop Corp. tumbled after a filing revealed that the company could sell more shares. The stock, which surged 271% earlier this week on the back of a "meme stock" boom, further erased gains. The company's shares plunged 20% on Friday. The video game retailer reached a deal that could issue up to 45 million shares and reported a drop in preliminary net sales for Quarter 1. The stock lost more than $8 billion in value during the three-day losing streak, narrowing its weekly gain to 27%. "GameStop is taking advantage of the recent surge in stock price to issue shares at a prudent premium, providing itself with more reserves while working to refocus its business and reverse ongoing operating losses," Wedbush analyst Michael Pachter wrote in a note to clients.