GameStop Corp (NYSE:GME), befitting of its meme stock status, joined in with the trend for stock splits and announced it is planning one of its own, sending its shares shooting higher overnight.
Buoyed by a recent resurgence of fondness for meme stocks, the retailer said it plans to request approval from shareholders at its upcoming annual meeting for an increase in the number of shares from 300,000,000 to 1,000,000,000.
This follows announcements from Amazon and Tesla for stock splits in recent days.
GameStop's split will be in the form of a 'stock dividend', according to a regulatory filing to the US Securities and Exchange Commission (SEC), meaning shareholders would be given an extra share or shares in order to dilute the share price.
As a stock split increases the number of shares and the price per share decreases proportionately, it is therefore supposed to make the shares easier for small shareholders to buy, as well as a sign of management’s confidence in future market gains.
GameStop said it also intends to request approval at the meeting for a new management incentive plan.
The shares jumped 17% to US$194.6 in after-market trading following the announcement.