Dear GME Stock fans, mark your calendars for June 2
Shareholders of a video game distributor GameStop (NYSE:EMG) will vote on whether to split its shares at the company’s annual meeting on June 2. Market watchers see this event as a potential catalyst for GME shares.
GME stock has gained 36% in the past five trading days, largely ahead of the June 2 vote. 3-to-1 basis, increasing the number of Class A common shares to 1 billion shares from 300 million shares previously.
GameStop is following several other notable companies in announcing stock splits this year, including Alphabet (NASDAQ:GOOGNASDAQ:GOOGL), Amazon (NASDAQ:AMZN) and You’re here (NASDAQ:TSLA).
What happened with GME stock
GameStop officially announced plans a stock split on March 31 of this year. The fact that the vote on the stock split will officially take place on June 2 has investors excited, with many buying GME shares ahead of time.
GameStop continues to see its share price fluctuate wildly.
This year, GME’s stock has hit $190 and as low as $78. Many analysts have speculated in recent months that the stock split could prove to be a major catalyst for GameStop shares and send the price soaring.
why is it important
With the meme stock craze cooling, GameStop’s stock price fell sharply from its 52-week high of $344.66. The company continues to focus on moving away from its original retail network and towards an e-commerce business model. But the shift to a more digitally oriented business has yet to gain much traction.
The proposed 3 for 1 stock split would lower GME’s stock price to $42.82 per share based on yesterday’s closing price. The drop in price could cause another run in the stock, leading to a potential further rise in the stock price.
While the stock split and lower price won’t change GameStop’s fundamentals as a company, it will make the company’s stock more affordable to retail investors. GameStop’s Board of Directors and management team strongly encourage shareholders to vote in favor of approving the stock splits.
What’s next for GameStop
GME shares soar today on news that the date for the vote on the stock split has been set for June 2. Investors should keep an eye on the stock price over the next week, leading up to the vote to see if it continues to rise. . The stock may also jump significantly once the results of the stock split vote are known. As always, plenty of drama swirls around GameStop and its shareholders.
At the date of publication, Joel Baglole did not hold (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.