GameStop Stock News and Forecast: GME stock split news as stock soars 20%


  • GameStop stock falls by over 7% on Wednesday.
  • AMC also falls sharply, down nearly 13% by the close.
  • GME falls back to the 200-day moving average.

Update: Gamestop (GME) stock is flying after hours on Thursday as the company announces it is to seek shareholder approval at the next Annual General Meeting (AGM) to increase the number of Class A shares from 300 million to 1 billion. This is for a share split. GameStop last did a 2 for 1 share split in 2007. Recent share split announcements from Google (GOOGL), Amazon (AMZN), and Tesla (TSLA) have been well received by shareholders. This looks like more of the same then as GME stock soars above $200 in after-hours trading to hit a high of $204. GME stock closed the regular session at $166.58. GameStop CEO Ryan Cohen must be happy. As recently as March 22 he bought 100,000 shares of GME at an average price of $101.76. At the time of writing GME stock is up 19% at $198 so a near doubling of his investment already.

GameStop stock (GME) fell on Wednesday as meme stocks began to pause for breath after a strong rally over the previous week. GameStop has rallied nearly 20% in the past week despite yesterday's falls. The performance for AMC is even stronger. Meme stocks came back into focus as risk attitudes recovered from the shock of the Ukraine conflict and the massive surge in energy prices. Interest rates were also marked higher, but the Fed appears confident in the strength of the US economy, and so risk assets caught a bounce. Initially, it was only high-quality large-cap stocks that benefitted, but last week saw this spread back into the more retail-orientated space as retail traders returned to some old favorites. 

GameStop Stock News

Ryan Cohen has decided to follow the lead of fellow meme stock CEO Adam Aron of AMC Entertainment in taking to Twitter. Ryan Cohen, the GME CEO, posed the question today: 

Naturally, the question generated much interest and response. Naturally, most of the responses were positive with neither short-sellers nor consultants finding much love from the Twittersphere. This is most likely referring to the dispute between Boston Consulting Group and GameStop. GameStop (GME) hired Boston Consulting in 2019, and Boston Consulting has now sued GameStop for about $30 million in fees, according to Bloomberg. 

GameStop also has a history with short-sellers. It was a short squeeze of epic proportions that kicked off the whole GME move last year. The stock had been heavily shorted using both stock and derivatives. Targetting short-sellers is an odd one since without them the epic squeeze could not have happened. Short-sellers are not liked by the retail community but are necessary to ensure prices remain accurate and reflect company performance and fundamentals. Without short-sellers, Ponzi schemes and pump and dumps are much easier and widespread. Lack of short-sellers generally leads to more fraud and less accountability. 

GameStop Stock Forecast

We saw the trend line worked again perfectly on this spike. On Wednesday, we called for recent gains in AMC and GME to stall and urged traders to take some profits. It has played out exactly as we wrote.

Historically, we can see that each spike in GME comes back down pretty quickly. It is likely to be the same this time. AMC also does the same, but often the spike is followed by a sharp fall as we say on Wednesday before a last dying push by bulls. But both AMC and GME have shown that the spikes do not last, so we expect the same again. Many readers will be GME or AMC devotees and do not wish to hear this, but trading is not about emotion or devotion to stocks. It is about making money. That is what traders' devotion should be too.

GME stock chart

GME stock chart, daily

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD hovers around 1.0800 on Fed's decision

EUR/USD hovers around 1.0800 on Fed's decision

EUR/USD returned to the 1.0800 price zone after the Federal Reserve announced its decision to cut the benchmark interest rate by 25 bps as widely anticipated.  Chair Jerome Powell's remarks put mild pressure on the US Dollar. 

EUR/USD News
USD/JPY retreats from weekly highs as FOMC delivers 25 bps rate trim

USD/JPY retreats from weekly highs as FOMC delivers 25 bps rate trim

USD/JPY hovers around 153.80 after the Fed broadly met market expectations on November's rate call. The Fed delivered a follow-up quarter-point cut on Thursday; markets now bet on the odds of a December three-peat. 

USD/JPY News
Gold regains $2,700 with Fed’s announcement

Gold regains $2,700 with Fed’s announcement

Gold extends its recovery following Wednesday's sharp decline and trades above $2,700, as the US Dollar eases following the Federal Reserve's decision to cut rates by 25 bps. Powell's speech revolved around Trump's victory. 

 

Gold News
Ethereum Price Forecast: ETH eyes $3,366 as open interest growth could fuel quest for new all-time high

Ethereum Price Forecast: ETH eyes $3,366 as open interest growth could fuel quest for new all-time high

Ethereum (ETH) is up nearly 8% on Thursday and could reach a new all-time high before year-end following increasing investor demand for the top altcoin. This is visible in ETH's open interest growth and increasing Ethereum exchange-traded funds (ETF) inflows.

Read more
Outlook for the markets under Trump 2.0

Outlook for the markets under Trump 2.0

On November 5, the United States held presidential elections. Republican and former president Donald Trump won the elections surprisingly clearly. The Electoral College, which in fact elects the president, will meet on December 17, while the inauguration is scheduled for January 20, 2025.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures