ENTERTAINMENT

GameStop wants to make shares more affordable

Apr 1, 2022, 8:53 AM
Game Stop stock split...
FILE: A mall visitor walks be a GameStop store on December 08, 2021 in San Rafael, California. Photo credit: Justin Sullivan /Getty Images
Originally Published: 01 APR 22 10:06 ET

(CNN) — The “apes” bullish on GameStop may soon be able to buy their favorite stock at a much lower price.

The meme darling of the Reddit crowd wants to initiate a stock split, a move that will drastically reduce the cost of one share, the company said late Thursday in a Securities and Exchange Commission filing.

To do so, GameStop will have to ask shareholders at its upcoming annual meeting for approval to increase the number of its class A shares from 300 million to 1 billion.

If investors say yes, a single share will become much cheaper — because the total value of the company stays the same. It’s just divided across more shares. Shares of GameStop surged 9% on the news in early trade Friday, bringing its year-to-date gain to 22%.

Stock splits are a popular move for some companies whose shares rise to high prices, and they make it easier for smaller investors to buy in. Amazon and Google owner Alphabet, whose shares are trading in the quadruple digits, both recently announced stock split plans. And Tesla, which split its stock in August 2020, is considering another split now that its stock is back above $1,000 a share.

GameStop is trading at about $180 a share. Based on that current price, an individual share should cost about one-third less — or about $54 — after a split because GameStop is looking to multiply the number of its shares by 3.33.

The company has been busy making moves that investors are closely watching. GameStop chairman Ryan Cohen, a co-founder of online pets supplies retailer Chewy, recently bought more shares. Gamestop has also been making investments in NFTs and other cryptocurrency and blockchain initiatives, and it recently hired two former Amazon executives to serve as its CEO and chief financial officer.

Several other meme stocks dipped Friday despite the GameStop split news. Shares of movie theater chain AMC were down about 4% in early trading. So was the stock of Hycroft Mining, a small gold and silver miner that has surged after AMC bought a stake in it.

Shares of Bed Bath & Beyond, another retailer that Cohen has recently invested in, fell slightly too.

The-CNN-Wire
™ & © 2022 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.

Entertainment

...
Mark Jones

Soap box derby set for Saturday in Daybreak

Daybreak will host the second annual Soap Box Derby on Saturday from noon to 3 p.m.
2 months ago
Nicolas Cage as “Nick Cage” contemplates his career in Mallorca, Spain in “The Unbearable Wei...
KellieAnn Halvorsen

FAN EFFECT REVIEW: “The Unbearable Weight of Massive Talent” is a hilarious grown-up comedy with an emphasis on grown-up

“The Unbearable Weight of Massive Talent” is a wonderfully weird, insightfully intelligent, and absolutely hilarious grown-up action-comedy. 
2 months ago
Garth Brooks Salt Lake...
Simone Seikaly

Garth Brooks sells out second Salt Lake concert in 45 minutes

It was the second time in less than a year that Garth Brooks sold that many tickets for a Salt Lake City concert so quickly.
2 months ago
FILE - Alec Baldwin performs emcees the Robert F. Kennedy Human Rights Ripple of Hope Award Gala at...
MORGAN LEE Associated Press

New Mexico fines ‘Rust’ for willful gun safety failures

Inspectors say Rust production managers took limited or no action to address two rifle misfires of blank rounds on set prior to the fatal shooting.
2 months ago
Netflix subscribers...
MICHAEL LIEDTKE AP Technology Writer

Netflix aims to curtail password sharing, considers ads

Netflix says it will try to minimize password sharing and consider creating a low-cost subscription supported by advertising.
2 months ago
Sistine chapel exhibition...
Samantha Herrera

Sistine Chapel exhibition coming to Salt Lake

Ceiling frescos from the Sistine Chapel are reproduced and presented in a viewer-friendly way in this exhibition
3 months ago

Sponsored Articles

Prescription opioid...
Know Your Script

Prescription opioid misuse | How to protect your family from the opioid epidemic

Studies have shown that prescription opioid misuse has increased since COVID-19. So what do you need to know about these opioids?
...

Tax Tuesday: The Most Common Mistakes People Make When Filing Their Taxes

Fortunately, for most average earners, they will not end up owing overpayments received for the Child Tax Credit in 2021.
...

Tax Tuesday: How will last year’s child tax credits affect you?

Fortunately, for most average earners, they will not end up owing overpayments received for the Child Tax Credit in 2021.
...

Tax Tuesday: Key Information Before the Filing Deadline

Businesses can receive a credit of up to $5,000 per employee in 2020 and up to $21,000 per employee in 2021.
national heart month...
Intermountain Healthcare

National Heart Month: 5 Lifestyle Changes to Make Today to Keep You Heart Healthy

Heart disease is the leading cause of death for both men and women. One person dies every 36 seconds in the United States from cardiovascular disease
Joseph Smith Memorial Building...
Temple Square

The Joseph Smith Memorial Building is an icon of Salt Lake City | Why hosting an event at this beautiful location will make you a hero this year

Here's why hosting an event at the iconic Joseph Smith Memorial Building in downtown Salt Lake City will make you a hero this year.
GameStop wants to make shares more affordable