GameStop Corp sinks as markets pull back after high inflation report
- NYSE: GME fell 1.40% in Tuesday’s trading session.
- GameStop announces that its stock split will be in the form of a dividend.
- Despite slowing NFT sales, more big brands are joining the industry.
NYSE: GME edged lower on Tuesday as broader markets retreated after the latest inflation report negated a hot start to the day. GME shares fell 1.40% and closed the trading session at $144.87. Consumer prices for March showed inflation in the US economy hit its highest level since 1981. All three markets started the day in the green but closed the session underwater. The S&P and NASDAQ fell for the third day in a row, while the Dow Jones fell 87 basis points during the session.
GameStop’s recent announcement of a stock split spooked retail traders on Reddit and Twitter. Popular action was the main catalyst for the retail sales crunch that took place in January 2021. If there’s one thing that excites retail traders more than a crunch, it’s a stock split. . GameStop said the upcoming stock split will be in the form of a dividend and not a traditional stock split. On the face of it, this won’t affect shareholders much, but it will allow short sellers to avoid having to repay the dividend. It also probably won’t trigger a squeeze, which retail traders were hoping for.
GME Stock Forecast
GameStop’s upcoming NFT Marketplace with Immutable X has garnered a lot of attention in the crypto industry. But in what has been a bear market lately, NFT sales and transactions are slowing down. Still, that hasn’t stopped big companies like Sony and the NBA from releasing or announcing new NFT series. Demand for new NFT markets has also been high lately after the industry’s largest site, OpenSea, was again hacked.