A Stock Split Won’t Save the Day For GameStop.
$GameStop(GME.US$ Following months of steady declines, GameStop “Apes” received some relief in March. A short-lived rally in “risk-on” plays and news of Chairman Ryan Cohen increasing his position in GME stock helped drive shares from less than $80 to nearly $200 in just over two weeks. Since then, however, shares of the video game retailer and meme stock legend have pulled back below the $150 level.
This move is in line with the overall market. Last month’s shrugging off of the Federal Reserve’s rate hikes has morphed into growing concern that rising rates will lead to an economic slowdown or a recession.
Investors may be tempted to buy the dip in GME stock, especially given management’s plans to implement a stock split. But keep in mind that external factors are likely to outweigh any boost from the split plans. In the month ahead, GME stock could easily drift back below $100 per share.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
