GameStop says it’s contemplating promoting extra shares.

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Shares of GameStop — the struggling retailer on the coronary heart of the buying and selling frenzy that captured the nation’s creativeness in January — tumbled in after-hours buying and selling on Tuesday as quarterly earnings missed expectations and the corporate stated in a submitting it might promote extra shares.

The corporate’s inventory was down roughly 12 p.c shortly after 6 p.m. The shares had remained regular amid a short convention name during which executives introduced the corporate’s outcomes and declined to take questions.

However the inventory started to slip after the corporate stated in a separate submitting with the Securities and Change Fee that it was evaluating whether or not to promote extra inventory “primarily to fund the acceleration of our future transformation initiatives.”

Such a share sale would cut back the worth of the corporate’s excellent inventory, primarily by rising the provision, in a course of known as dilution.

The drop in share costs was the most recent bout of volatility for a inventory that earlier this 12 months grew to become a battleground between a throng of particular person merchants loosely organized on Reddit and complicated hedge funds that had guess aggressively that the shares of the largely brick-and-mortar retailer had been doomed to fall.

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For a short second in late January, the Reddit merchants acquired the higher hand, setting off a so-called quick squeeze that despatched the share value up greater than 1,700 p.c in mere weeks. The inventory subsequently tumbled, dropping practically all its beneficial properties, solely the resume its climb late final month. On the shut of buying and selling on Tuesday it remained up a outstanding 865 p.c this 12 months.