Gamestop's shares will become cheaper today due to the planned split, i.e. the division of the company's shares:
- Investors will receive 4 Gamestop shares for each share held, the split will not directly affect the value of the shares held. At the same time, the bar for new investors interested in the company's shares has been lowered, which could potentially promote the growing popularity of Gamestop's shares;
- As a result of the split, the post-split share price will be close to $38. Pre-session trading, however, indicates a higher opening near $40 due to the large number of buy orders;
- Gamestop's shares have not lost value since the beginning of the year despite massive declines in index prices, which may come as a surprise, especially given that the stock is seen as a high-risk stock;
- The stock split, although it does not directly affect the value of shareholders' holdings, often contributes to a short-term rebound;
- The company's shares gained a lot of popularity in 2021, thanks to a 'short squeez' action that led to the closing of some institutional investors' short positions and ended with a massive rally in Gamestop's share price;
- Some investors can look forward to further dynamic increases and treat Gamestop as a kind of 'lottery ticket', active even during a downturn;
- Gamestop has joined the ranks of Wall Street companies that have conducted a split this year, which recently (July 15) included Alphabet (GOOGL.US).
Gamestop (GME.US) shares, W1 interval. 'Dormant' for years, the company's shares are moving in an upward trend. A very 'painful' 2022 for financial markets has not done them much damage, which can be read positively by bulls and contribute to interest in GME.US shares. The price is still above the 200-session moving average, which, according to technical analysis, is one of the foundations for determining the trend. Source: xStation5
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