GameStop’s (GME) stock is up 8% after the video game retailer announced a four-for-one stock
split.
The stock split will take the form of a dividend and be distributed after the close of trading on
July 21, the company said in a written statement.
GameStop initially announced plans to split its stock in March of this year and shareholders
voted to support the move at the company’s annual meeting held this week.
Share splits have proven to be popular with several other companies undertaking them this
year, including Amazon (AMZN), Shopify (SHOP), and Google parent-company Alphabet
(GOOGL).
Stock splits can spark rallies in shares as retail investors buy them at lowered prices. However,
Amazon’s stock has fallen more than 5% since the e-commerce company split its stock on a 20-
for-1 basis in early June.
GameStop is known as the original “meme stock” and its share price has swung wildly over the
last 18 months as retail traders have executed multiple short squeezes on it.
GameStop’s stock is down 23% year to date at $117.43 U.S. per share.
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