- The video game retailer GameStop Corporation (GME) that the company would request its stockholders' approval at its next shareholder meeting for increasing its shares to perform a stock split.
- GameStop plans to increase its Class A common stock from 300 million to 1 billion.
- Despite a sharp decline from their all-time highs in the first half of 2021, the meme stocks remain higher sharply from their 2021 starting.
The video game retailer GameStop Corporation (GME) announced on March 31 that the company would request its stockholders' approval at its next shareholder meeting for increasing its shares to perform a stock split.
This move reflects the company's effort to become the latest US firm to make it easier for investors to own its shares.
The Grapevine, Texas-based company said that it seeks to increase its Class A common stock from 300 million to 1 billion to partly implement a stock split in the form of a stock dividend. The GME stock rallied in the after-market following the news.
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Meanwhile, the news came amid a rally in the meme-stocks in the past two weeks, suggesting that the investors have regained confidence in the stocks. The GME stock surged 113.26% from March 14 and closed at US$166.58 on Thursday before surging 19% in the extended trading following the stock split announcement.
Another meme-stock, AMC Entertainment Holdings, Inc. (AMC), which tends to move corresponding to GME, surged 81.71% since March 14 and closed at US$24.64 on March 31.
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Are meme stocks back in the game?
The investors are again keeping a close watch over the meme stocks, as evidenced by their rally in the final month of the first quarter of 2022.
This year, given the performance of the stocks, it is seen that the GameStop Corporation (NYSE:GME) stock stayed in the positive territory, while AMC Entertainment Holdings, Inc. (NYSE:AMC) was slightly in the red, reflecting that the investors are turning their focus on the meme-stocks.
The recent gains indicate that the meme stocks may again create headlines in the coming months.
The analysts have suggested that the stock split could further bolster gains in the GME stock while attracting more meme-stock investors. In addition to that, they also indicated that the hopes of resolution between Russia and Ukraine had lifted the investors' sentiment, making the conditions more beneficial for the meme-stocks.
In recent years, the stock split seemed to have fuelled gains in various blue-chip companies. Over the past two years, companies like Apple, Inc. (AAPL), NVIDIA Corp. (NVDA), and Tesla, Inc. (TSLA) have their shares split.
Meanwhile, Amazon.com, Inc. (AMZN) and Alphabet, Inc. (GOOGL) has recently announced their upcoming split news.
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