Gamestop Announces 4 for 1 Stock Split

Gamestop spiked in after-hours trading on Wednesday after the video game company backed a 4-for-1 stock split.

GameStop (NYSE:GME) shares were up more than 7% in after-market hours. The company's stock split will be in the form of a stock dividend, and shareholders of record on July 18 will receive three additional share dividends for each share owned. The stock dividend will be distributed after the close of trading on July 21, 2022, the company said in a statement. Gamestop had lost about 23% of its value to date due to the decline in the stock frenzy that caused the share price to rise to $325 about 18 months ago. Gamestop experienced a big leap with this initiative and increased by 7%. Even if there are shareholders who are skeptical about what the 4 for 1 stock split will bring in the long run, the majority think that this initiative will end positively. This appreciation made shareholders smile. About a year and a half ago, Gamestop upset the data of Wall Street analysts with an initiative made by online players. Gamestop shares, which experienced an unprecedented leap in history, suffered a huge loss in value as this trend disappeared. Gamestop moved away from outdated physical game sales and sought different markets Ryan Cohen wants to make Gamestop part of the virtual world with his efforts to make Game Stop the “Amazon” of the Gaming world. Ryan Cohen explained the company's mission as follows: "The company needs to evolve into a technology company that delights gamers and delivers exceptional digital experiences - not a video game retailer that over-prioritizes physical things and stumbles in the online ecosystem."