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GameStop struggled because more people are downloading video games instead of buying them in stores.
Spencer Platt / Getty Images
GameStop’s
The stock split finally happened — and its shares are soaring on the news.
The company announced plans to split its shares for four for one later this month, sending shares higher after the market closed on Wednesday. Shareholders of record at the close of business on July 18th will receive three additional shares for each share held through a dividend. Additional shares will be distributed on July 21, and
Jim Stop
(Stock ticker: GME) Shares will start trading on a hash rate basis on July 22nd.
Jim Stop Shareholders in June Vote in favor of expanding the company’s share license from 300 million to 1 billion in order to facilitate the retail process. The company said in March that the higher mandate would allow it to implement a split and “provide flexibility for the company’s future needs.”
GameStop shares are up 9% to $128 in pre-market trading even though the stock splits don’t make the company more valuable, since they’re closer to slicing the pie into smaller slices. If GameStop splits at its recent after-hours levels, it will trade at $30.81.
That’s about a $30 pre-split price target, analyst Michael Bachter at Wedbush sets the stock, which has a rating of Underperform. “It makes it affordable for the unsuspecting sapphires who haven’t lost all their money yet,” Butcher said. Baron Via email when asked about the split.
The stock has traded as high as $255.69 in the past 12 months, but is still significantly above 2020 levels. Even the likely number after the split is much higher than where GameStop shares have traded before.
rubbery
(CHWY) Co-Founder Ryan Cohen announced a share And launched a campaign launched from the company Running meme-fueled in January 2021. GameStop stock is down 20% in 2022, compared to a 19% drop in the market
Standard & Poor’s 500
index.
Cohen became GameStop’s board chairman a year ago. Company added Executives and employees With backgrounds of technology, e-commerce and blockchain helping to turn things around as businesses struggle to switch to online video game sales rather than in stores.
After reshuffling the board and management, the company invested in fulfillment and customer care efforts, as well as expanding its offering to include more computer accessories and televisions. It’s also launching a market for non-fungible tokens. Experts like Pachter are skeptical about this blockchain effort Stock will benefit.
Write to Connor Smith at [email protected]
