GME stock split vote and short-term chatter drives GameStop shares up 30%
GameStop (GME) stock is back in play this week as message board chatter ahead of the company’s earnings and a possible short-term squeeze sent the meme stock soaring 30% on Thursday after winning almost 30% on Wednesday.
After closing Wednesday at $115 per share, up 29.1% from Tuesday’s closing price of $89 per share on more than 10 million trading volumes, GameStop stock jumped to more than 148 dollars per share after the opening bell. GameStop shares trade on the NYSE under the symbol GME.
GameStop announced Monday that it will release financial results for its fiscal first quarter on Wednesday, June 1, including a shareholder vote to increase its outstanding shares to 1 billion from the current 300 million, which will be used, in part, to pay dividends in the form of stock.
GameStop Corp. Pricing Chart (NYSE GME)
Vote on stock split next week
On March 31, electronics retailer “announced its intention to seek shareholder approval at the upcoming 2022 annual meeting of shareholders for an increase in the number of authorized Class A common shares from 300,000,000 to 1,000,000,000,” the company disclosed in an 8-K form.
While the exact split ratio remains to be determined, Gamestop added that it plans to use some of the additional shares “to implement a split of the company’s Class A common stock in the form of a stock dividend. “, which he said would provide additional flexibility. .
“The Wall Street Bets crowd smelled blood in the water as news began to circulate that short-term interest had risen to its highest level in nearly a year,” the newsletter noted. daily The Water Coolest, referring to the reddit forum r/WallStreetBets. “[T]Retail investors (and probably some hedge funds) couldn’t get enough shares.
Crypto Product Deployments
Earlier this month, the army of retail investors that has driven GameStop shares higher for the past year and a half claimed its biggest victim, hedge fund Melvin Capital, founded in 2014 by Gabriel Plotkin. closed and said it would liquidate its accounts and refund the remainder. funds to investors.
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Reddit user Aus_pol said, “GME does the GME thing.” Added user PrimaryAccording9162, “GME is one on one.”
Also this week, GameStop officially launched the new Digital Asset Wallet allowing gamers to store, send, and receive cryptocurrencies and non-fungible tokens (NFTs). Additionally, GameStop plans to launch a new NFT Marketplace this quarter.
GameStop is considered one of the leading so-called meme stocks, along with AMC Entertainment (AMC) and Bed Bath & Beyond (BBBY), pushed by retail investors betting against hedge funds that shorted the stock amid Covid-related retail store closures.