11X Stock Market Accelerator Summit

Eric Fry reveals how an A.I.-based secret could make you up to 11 times RICHER on the same stocks you’re investing in now… without using options, leverage, or anything risky.

Wed, September 27 at 8:00PM ET

GME Stock Starts Trading at $38 Following GameStop Stock Split


  • GameStop (GME) shares are trending after the company split its stock on a 4-for-1 basis.
  • GameStop follows other tech companies in splitting its stock this year.
  • Investors and analysts will be watching to see if the stock split leads to a new rally in GME shares.
GME Stock - GME Stock Starts Trading at $38 Following GameStop Stock Split

Source: Shutterstock

Shares of GameStop (NYSE:GME) are trending today after the video game retailer split its stock on a 4-for-1 basis.

GME stock is now trading at $38 per share following the split. Shareholders of record received three additional shares for each one they previously owned. GameStop first announced plans to split its stock in March of this year, and shareholders approved the move at the company’s annual meeting in June.

Before today’s stock split, GameStop’s share price had fallen 75% year-to-date and was trading at $158.75 per share.

What Happened

The stock split lowers the price at which investors can purchase GME stock to $38, and the more affordable cost might attract individual, price sensitive investors to the shares, leading to a renewed rally. A stock split doesn’t change the underlying fundamentals or value of a company, but divides existing shares into smaller pieces.

However, stock splits make the shares of companies more affordable and can increase the shareholder base. GameStop is following several other high-profile technology companies that have also split their stocks this year, including Amazon (NASDAQ:AMZN) and Google parent company Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), which each split their shares on a 20-for-1 basis. Electric vehicle maker Tesla (NASDAQ:TSLA) has announced plans to split its stock on a 3-for-1 basis.

Why It Matters

GME stock continues to draw attention and be closely followed by investors and the business press. Known as the original “meme stock,” GameStop shares have been caught in a short squeeze several times over the past 18 months and risen above $350 before crashing back to earth.

Investors, analysts, and the media will be watching to see if the stock split will lead to a new rally in GME shares. The stock split has attracted a lot of chatter on social media channels, including the WallStreetBets subreddit that is popular among retail investors and day traders. However, the initial reaction to the stock split appears muted, with GameStop stock up only a slight 0.22%.

What’s Next for GME Stock

We’ll see if GameStop’s stock split has a significant impact on the share price. The split was well telegraphed by the company and documented in the press, so the news may already be priced into the share price. But, as is usually the case, it is difficult to predict what will happen with this highly volatile stock.

On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

Article printed from InvestorPlace Media, https://investorplace.com/2022/07/gme-stock-starts-trading-at-38-following-gamestop-stock-split/.

©2023 InvestorPlace Media, LLC