To The Moon

• GameStop(NYSE:GME) investors will participate in the annual meeting on June 2
• One proposal up for vote is a stock split
• Many on Wall Street see this as a catalyst for GME stock

Shareholders of video game retailer GameStop(NYSE:GME) will vote on whether it should split its stock at the company’s annual meeting on June 2. Market observers see this event as a potential catalyst for GME stock.

GME stock has gained 36% over the past five trading days, largely in anticipation of the vote on June 2. In March, GameStop’sshare price jumped 17% higher when it was first reported that the management team plans to split the stock on an apparent 3-for-1 basis, increasing the number of Class A common stock to 1 billion shares from 300 million shares previously.

GameStop is following several other notable companies in announcing stock splits this year, including Alphabet(NASDAQ:GOOG, NASDAQ:GOOGL), Amazon (NASDAQ:AMZN) and Tesla(NASDAQ:TSLA).

What Happened With GME Stock

GameStopofficially announced plans for a stock split on March 31 of this year. That the stock split vote will officially happen on June 2 has investors excited, and many are buying GME shares ahead of time.

GameStop continues to see its share price fluctuate wildly.

This year, GME stock has been as high as $190 and as low as $78. Many analysts have speculated in recent months that the stock split could prove to be a major catalyst for GameStop shares and send the price sharply higher.

Why It Matters

With the meme stock craze cooling, GameStop’s share price has fallen steeply from its 52-week high of $344.66. The company continues to focus on moving away from its original brick-and-mortar retail network and toward an e-commerce business model. But the move to a more digitally oriented company has yet to gain a lot of traction.

The proposed 3-for-1 stock split would take GME stock’s price down to $42.82 a share based on yesterday’s closing price. The lower price could prompt another rush into the stock, leading to another potential run up in the share price.