Why GameStop Is Down for the Third Day After Its Stock Split
Shares of GameStop (NYSE: GME) are falling 3.2% at 11:10 a.m. ET on Tuesday on no company-specific news. Walmart's profit warning yesterday spooked the market, and the Dow Jones Industrial Average and S&P 500 are both lower, though each is down less than 1%, respectively.
Tuesday also marks the third consecutive trading day since GameStop split its stock that its shares have fallen. Stock splits are often seen as bullish indicators and the video game retailer's investors were hoping it would spur a big surge in price to trigger a short squeeze. That hasn't happened.
The prospects for a recession weigh on retailers everywhere, but GameStop is already a troubled company that's been trying to turn its business around. The video game retailer has leaned heavily into the cryptocurrency market by launching a non-fungible token (NFT) wallet as well as an NFT marketplace where the tokens can be bought and sold.
Source Fool.com
