Why GameStop Stock Popped Today
While GameStop (NYSE: GME) has been in the news as a meme stock since that term was first coined more than a year ago, investors are piling into it Thursday for a different reason. The stock popped by more than 11% early in the trading session, and remained 9.2% higher as of 11:30 a.m. ET.
The news driving the shares higher was management's announcement Wednesday that it would implement a 4-for-1 stock split after the close of trading on July 21. Once that takes effect, shareholders will have four times the number of shares they had prior. But the event won't change anything about the fundamentals of GameStop's business or the value of its shareholders' stakes in it. The new share price, after all, will be just one-fourth of the previous price.
Source Fool.com
