Motley Fool Money GameStop's Split, Peloton's Gamble, and Crafty Investments
Jul 7, 2022
Tim Beyers, a Senior Analyst at Motley Fool, discusses GameStop's intriguing 4-for-1 stock split, likening it to a Chinese finger trap—exciting yet ultimately hollow. He also dives into Peloton's costly morale-boosting strategy for employees and the implications for shareholders. Asit Sharma shares insights on craftsmanship in street food and its parallels in investment, highlighting quality and sustainability in both sectors. The conversation also touches on Virgin Galactic's partnership with Boeing in the aerospace arena.
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GameStop Split: A Finger Trap
- GameStop's 4-for-1 stock split generates excitement but has no real value.
- It's a gimmick, like a finger trap, creating more shares for potential shenanigans.
Stock Split Rationale
- Consider stock splits as potentially positive if a company's stock is illiquid.
- In such cases, splits increase liquidity and market vibrancy.
Peloton's Gamble
- Peloton's cash bonuses and stock option repricing boost employee morale but cost shareholders.
- Shareholders essentially fund this, hoping for future returns.
