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GameStop meme stock split: What to expect from GME’s liquidity push

By Joyanta Acharjee

15:14, 19 July 2022

GameStop stock chart shown on a smartphone next to company logo
Just days from a GameStop (GME) stock split, what can investors in this meme stock expect? – Photo: Shutterstock

Investors in a closely-watched videogames retailer are just days away from receiving new stock under GameStop’s (GME) 4-for-1 stock split.

This is the company’s first stock split since 2007 and around 230 million new shares will be created on Friday. looks at what’s in store for investors – both new and old.

In pre-market trading on Tuesday, the stock was up 3%. Over the past six months the stock is up a staggering 38%.

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GameStop (GME) stock

Stock split

Intense interest in a stock – especially “meme stocks” like GameStop – tends to increase the price, so companies often carry out a stock split by issuing new shares to bring the price down to a more appealing level for potential new investors.

This also generates demand as more stock is available for purchase in the market.

Research shows that a large positive return trend exists amongst companies that carry out stock splits, according to financial analytics company Factset.

GameStop joins a stock split trend amongst other big-name North American corporations such as Shopify (SHOP), Google’s parent Alphabet (GOOG) and Tesla (TSLA) who have carried out recent stock splits.

Shopify (SHOP) stock

Digital Marketplace

Two astronauts orbit the Earth as seen on GameStop's new digital platformGameStop

New investors in GameStop will probably be paying close attention to the new digital marketplace.

Already operating over 4,000 retail videogame stores across North America, Europe and Australia and New Zealand, GameStop recently opened its own non-fungible token (NFT) digital NFT Marketplace allowing gamers and collectors to buy, sell and trade NFTs.

Non-fungible tokens are unique, non-tradeable ownership receipts for digital assets that are tracked on a special computer network known as a blockchain to prove authenticity. They can take the form of a static image, video clip or an animated 3D image.


17.21 Price
+10.660% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.39


7.48 Price
+7.700% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.07


235.29 Price
-1.640% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.33


141.73 Price
+5.400% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.63
A digital sculpture in neon is an example of what an NFT isShutterstock

Media reports say that around $1.7m (£1.41m, €1.65m) was generated in the first day on GameStop’s new marketplace but one Wall Street analyst is sceptical about its prospects.

“We think GameStop’s NFT marketplace and wallet is unlikely to become the preferred solution for console and mobile gamers,” Wedbush Securities analyst Daniel Ives wrote in a research note.

“Console and mobile walled gardens are controlled by much larger technology companies that will be unwilling to let a third party such as GameStop capture a meaningful share of consumer spending on-platform.”

Job cuts

Just two weeks ago, the company fired chief financial officer Michael Recupero, promoting chief accounting officer Diana Saadeh-Jajeh in his place.

The company has also cut a number of jobs, according to media reports. Although GameStop has not officially disclosed the exact number, social media comments had put the figure as high as 20%.

Stock price reactions to corporate layoffs can either be received as an opportunity for business improvement or a sign of trouble ahead. Major stock movements can be used by investors as a basis for long or short positions.

Recupero joined GameStop last year from (AMZN), where he spent more than 17 years supporting growth across global locations and product categories. (AMZN) stock

Investors will get an update on GameStop’s second quarter earnings in September.


Markets in this article

GameStop Corp (Extended Hours)
17.21 USD
1.62 +10.660%
Alphabet Inc - A (Extended Hours)
129.51 USD
-2.78 -2.120%
Shopify Inc (US) (Extended Hours)
73.05 USD
-1.5 -2.040%
Tesla Inc (Extended Hours)
235.29 USD
-3.92 -1.640%
AMZN Inc (Extended Hours)
144.88 USD
-2.17 -1.480%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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