GameStop Shares Soar 15.9% After Company Seeks Stock Split

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Meme stock darling GameStop announced on March 31 that it will request stockholder approval for a stock split at the upcoming 2022 annual meeting, according to a Securities and Exchange Commission (SEC) filing. The stock surged on the news, being up 15.9% in pre-market trading on April 1.

See: Tesla Plans Another Stock Split, Stock Jumps
Find: What Is a Stock Split and How Does It Impact Your Portfolio?

“GameStop Corp. announced its plan to request stockholder approval at the upcoming 2022 Annual Meeting of Stockholders for an increase in the number of authorized shares of Class A common stock from 300,000,000 to 1,000,000,000 through an amendment to the Company’s Third Amended and Restated Certificate of Incorporation (the “Charter Amendment”) in order to implement a stock split of the Company’s Class A common stock in the form of a stock dividend and provide flexibility for future corporate needs,” the company said in the 8k SEC filing.

Stock splits have been popular in recent weeks, most recently with Tesla, which announced it will ask shareholders to vote at this year’s annual meeting to authorize additional shares in order to enable a stock split, the company just announced in a tweet. The news also sent the stock jumping 5.7% in pre-market trading on March 28.

GameStop would also join the likes of Amazon and Alphabet, which announced a 20-for-1 stock split in March and February respectively, also sending both of those stocks soaring at the time.

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The company has been enjoying another meme-like rally recently, being up 37% in the past month and up 9% year-to-date.

See: Meme Stock Madness Is Back: GME, AMC Soar Again
Find: Amazon Stock Could Get Much Cheaper with 20-for-1 Stock Split

Earlier this year, GameStop — which reached a somewhat cultlike status as a company — announced it had solidified plans to launch an NFT platform in an effort to turn around its business. Rumors had started in November as to when the launch would be, when the company posted a slew of NFT-platform and Web3 gaming jobs on its career page, as GOBankingRates previously reported.

About the Author

Yaël Bizouati-Kennedy is a full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also worked as a vice president/senior content writer for major NYC-based financial companies, including New York Life and MSCI. Yaël is now freelancing and most recently, she co-authored  the book “Blockchain for Medical Research: Accelerating Trust in Healthcare,” with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in Journalism from New York University and one in Russian Studies from Université Toulouse-Jean Jaurès, France.

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