GameStop shares are down below $ 100 as WallStreetBets traders face huge losses

GameStop shares are down below $ 100 as WallStreetBets traders face huge losses

GameStop stock price broke on Tuesday, down nearly 60% to $ 91 a share in afternoon trading. The drop also indicated that the popular stock market discussion board the Wall Street Bits Reddit – a major force behind last week’s dizzying rally in troubled video game vendors’ shares and elsewhere – may lose its charm to move the market.

GameStop’s drop was followed by a big drop in short equity interest, which measures the number of company shares that have been borrowed for sale. That previously raised short interest, and the fact that hedge funds and others betting against the video game retailer have shrunk, has been cited by many as a reason for GameStop’s stock rally.

GameStop, Reddit, Battle of Wall Stree …


The decline could also lead to big losses for some individual investors who digest the positive suggestions of the published stock market WallStreetBetsThat its popularity rose last week to 8 million members. GameStop stocks hit an all-time high of $ 483 on Thursday.

Those shares are now down 81%, hitting $ 91 in less than a week. That wiped out nearly $ 29 billion from GameStop’s stock market value, which last week peaked at $ 35 billion in market capitalization. On Tuesday, the market value fell to $ 6.4 billion.

Shares of other companies that received enhanced signals on WallStreetBets also suffered sharp declines as well. Shares of the movie chain AMC Entertainment also fell about 50% on Tuesday to around $ 6.50 per share. This share was up to $ 20 last week. BlackBerry shares, which were hitting $ 28 last week, also fell to $ 11.

On Monday, Acting Chair of the US Securities and Exchange Commission, Alison Herrin Lee, He told NPR The stock market regulator has been looking at various aspects of the GameStop spike, including whether the brokers have acted appropriately and whether there has been any market manipulation. It also warned against companies trying to raise money by selling shares at prices that appeared to be inflated by merchants who were driven by social media and that were not sustainable.

Reported by CBS MoneyWatch On Monday, moderators on the WallStreetBets discussion board recently discovered a “significant amount” of bot activity in stock recommendation content posted to its group.

Robinhood Resumes GameStop Limited Trading …


On Monday, the Naked Brand Group, which sells intimate apparel for men and women alike, announced that it has sold more than 29 million shares in a follow-up bid at $ 1.70 per share, raising $ 50 million for the company. The company, which is headquartered in Auckland, New Zealand, is in the process of closing all of its stores in favor of online sales.

Naked Brand shares traded for 7 cents each as recently as November. In its offering document submitted to the Securities and Exchange Commission, the company said that its share price had witnessed “severe fluctuations” in recent weeks. She said the price fluctuations appeared to be driven by chatter on social media as well as “short interest” in the company, among other factors.

On Tuesday, Naked Brand shares fell to 94 cents each, down 45% from Monday’s IPO price. A Naked Brand spokesperson did not respond to a request from CBS MoneyWatch for comment.

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