GameStop wants to make shares more affordable for meme stock lovers

“Monkeys” bullish on GameStop may soon be able to buy their favorite stock at a much lower price.

The Reddit audience’s meme darling wants to initiate a share split, a move that will drastically reduce the cost of a share, the company said late Thursday in a report from the Securities and Exchange Commission.

To do so, GameStop must ask shareholders at its next annual meeting for approval to increase the number of Class A shares from 300 million to 1 billion.

If investors say yes, a single stock will be much cheaper – because the total value of the company remains the same. It is only divided into more shares. The shares in GameStop rose by 4% on the news at the dinner trade on Friday, which gives the rise so far this year to 17%.

Stock splits are a popular trait for some companies whose stocks are rising at high prices, and they make it easier for smaller investors to buy. Amazon and Google owners Alphabet, whose shares are trading in four-digit numbers, both recently announced share split plans. And Tesla, which split its stake in August 2020, is considering another split now that the stock is back above $ 1,000 a share.

GameStop is trading at around $ 145 per share. Based on the current price, a single share should cost about a third less – or around $ 52 – after a split because GameStop wants to multiply the number of shares by 3.33.

The company has been busy making movements that investors closely monitor. GameStop Chairman Ryan Cohen, one of the founders of the online pet retailer Chewy, recently bought more shares. Gamestop has also invested in NFT and other cryptocurrency and blockchain initiatives, and has recently hired two former Amazon executives to serve as its CEO and CFO.

Several other meme shares fell on Friday despite the GameStop news. The shares in the cinema chain AMC fell by about 5% in trading this morning. So was the stock in Hycroft Mining, a small gold and silver miner that has risen after AMC bought a stake in it.

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

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