GameStop Corp shares jumped 15% off pre-market trading on Friday after a video game retailer at the heart of last year's trade unrest said he would seek the owners' permission to share stocks.
The move comes as GameStop shares and other so-called "meme" stocks, including AMC Entertainment Holdings, see renewed interest from store investors, accumulating risky assets strengthened by hopes of a settlement in Russia and Ukraine.
GameStop shares, almost doubled in value over the past two weeks, have risen 15% to $ 192 in betting that stock divisions, which make the company's shares more affordable, could increase the seller's value by attracting more traders. .
Share divisions are becoming more and more common as companies look to manage "their share of the stock in what is considered a good investment destination", said Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.
Two years ago, Apple, Nvidia and Tesla split their shares, while Amazon and the Google-Parent Alphabet recently announced the upcoming division of shares.
"Does it separate new purchases? Probably not, but highlighting an additional tool for raising stock prices despite financial theory means otherwise,"
Shares of many companies that have announced or split their stock have so far traded above $ 500 before the split.
Shares of AMC and Bed Bath and Beyond Inc, another trading partner, gained about 3% and 5%, respectively, in trading ahead of the opening bell on Friday.
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Courtesy Grizler.com
