GameStop (GME) plans stock split. Are meme stocks back in the game?

April 01, 2022 02:38 AM PDT | By Rupam Roy

Google News:

GameStop (GME) plans stock split. Are meme stocks back in the game? — Image source: © Jetcityimage | Megapixl.com

Recent News

What’s Driving Activity Around Simon Property Group (NYSE:SPG) On The...

Is NYSE’s KORE Group (NYSE:KORE) Gaining Momentum On The Back Of Telec...

What’s Driving Attention To Nutrien (NYSE:NTR) On NYSE And S&P 500 Ind...

Is TELUS Digital (NYSE:TIXT) Signaling Sector Momentum Across The NYSE...

Highlights:

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.

Also Read: Why is DeFi Kingdoms (Jewel) crypto rising?

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.

Also Read: Why is STEPN (GMT) crypto gaining attention?

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.

Also Read: Why is Chainlink (LINK) crypto gaining attention?

Bottom line:

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.

Also Read: Why is Kava (KAVA) crypto gaining attention?

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.