Why GameStop Is Falling on the Day It Splits Its Stock
After a long stretch of seeing its stock rise and often beat the market, shares of GameStop (NYSE: GME) are heading lower this morning, down 3.9% as of 10:42 a.m. ET. Today, however, the video game retailer's performance is worse than the market as a whole, with the Dow Jones Industrial Average and S&P 500 both falling less than 1% so far.
It's a notable decline for GameStop if only because its shares will split today after the market closes. They will start trading tomorrow at a new, lower price to reflect the 4-for-1 stock split that will occur.
Stock traders have been driving GameStop shares higher all week long in anticipation of the split, and in fact the stock is up 30% in July following the retailer announcing it would be splitting its shares.
Source Fool.com
