To The Moon

$GameStop(GME)$ Became the Most mentioned tickers in#WSB in last 1H.
Following $SPDR S&P 500 ETF Trust(SPY)$, $Tesla Motors(TSLA)$, $ContextLogic Inc.(WISH)$, $AMC Entertainment(AMC)$, $LendingTree(TREE)$, $Heartbeam Inc(BEAT)$, $iShares MSCI Global Energy Producers ETF(FILL)$, $Maximus(MMS)$, $Zillow(Z)$.

1. It is a 4- for -1 Stock Dividend welcomed by markets.

Because GameStop's announced the company's board approved a 4-for-1 stock split.

Source: https://gamestop.gcs-web.com/

The dividend will be distributed after the market close on July 21 and will begin trading on a stock-split-adjusted basis on July 22, according to the announcement. Earlier in April, according to SEC filings, GameStop would seek approval at its next shareholder meeting to increase the number of outstanding shares of Class A common stock from 300 million to 1 billion, in part for  stock splits dividends. 

$GameStop(GME)$  soared close to 9% in the after-hours, So far this year, GME YTD is -21%.

$(GME)$ rose sharply after hours, mainly because the stock dividend was accept by markets. GameStop Corp becoming one of the latest companies to do so as the practice has gained in popularity.

Please stop calling this a stock split. Call it a Stock Dividend.

Source from Reddit

Accroding bloombergs, share splits had almost disappeared from U.S. stock markets before $Apple(AAPL)$ . and $Tesla Motors(TSLA)$  revived the practice after splitting their stocks in 2020. $Amazon.com(AMZN)$ Inc. followed suit earlier this year. The moves helped trigger rallies in the companies’ shares as retail investors, who tend to favor stocks with lower price tags, flocked to them.

You May interested in the belowing two articles, which highlighted the details you may care regarding a stock split:

1) Amazon stock split, Google Next？

2) SOFI Plans 10-for-1 Stock Split, Same Logic as GOOGL,AMZ,TSLA？

2.  Cheaper to buy or Expensive to short? Can $GME still head to the moon?

From company's fundmentals, GameStop has been beleaguered by questions about its business model and direction. At a time when consumers prefer to purchase video games digitally in online stores, GameStop has experimented with pivots into esports and even crypto. 

GameStop raised more than a billion dollars throughout 2021, enough money to pay down its debt and still have more than $1.5 billion left on the balance sheet to fund the business. The company's operating losses totaled $154 million in the first quarter, so it could run for several quarters at that rate without worrying about its cash balance.

Management invested heavily in inventory last quarter to benefit from this traffic, ramping up that line item to $918 million, up from $571 million in the prior-year period. 

The stock is still expensive too, trading at a price-to-sales ratio of 1.8, over four times as expensive as a comparable electronics retailer like Best Buy.

The company became the poster child for so-called meme stocks, seeing volatile swings in the share price over the last year that have had little to do with its business fundamentals.

3. So do you  think is GameStop a Buy after stock dividend?

What's your opinion? Please click to join our discuss: Will GME's 4-for-1 Stock Split Spark Another Rally?