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

Shares of GameStop Corp. fell sharply after the release of a document revealing that the company may sell more shares. The stock, which had surged 271 percent earlier in the week on the back of a "junkie stock" craze, erased further gains. The company's shares tumbled 20 percent on Friday. The video game retailer reached an agreement to issue up to 45 million shares and reported a decline in preliminary net sales for the first quarter. The stock's market value evaporated more than $8 billion in the three-day losing streak, and its one-week gain narrowed to 27 percent.Wedbush analyst Michael Pachter wrote in a report to clients that "GameStop is taking advantage of the recent stock price spike to prudently issue shares at a premium, providing itself with more reserves while trying to realign the business focus and reverse ongoing operating losses."