Skip to main content

Advertisement

Advertisement

Business

GameStop tumbles nearly 20% as retail-driven surge dies down

GameStop tumbles nearly 20% as retail-driven surge dies down

FILE PHOTO: GameStop logo is seen near displayed stock graph in this illustration taken February 2, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

NEW YORK: Shares of video game retailer GameStop tumbled nearly 20 per cent on Tuesday (Feb 9) to their lowest levels since the start of a retail investor-led surge that echoed across Wall Street.

Investors who followed the popular Reddit forum WallStreetBets helped push shares of GameStop to a closing high of US$347.51 on Jan 27 as part of a strategy to squeeze hedge funds that had taken a short bet on the retailer. Since then, GameStop has tumbled about 85 per cent to near US$40 a share.

The discussion of the stock was notably muted on Reddit as shares fell Tuesday.

"This really is like a party that's dying down," one user wrote.

Other Reddit favorites tumbled alongside GameStop, with AMC Entertainment Holdings Inc shedding nearly 12 per cent and BlackBerry dropping nearly 4 per cent. The benchmark S&P 500 was flat in afternoon trading.

The average price target of analysts tracked by Refinitiv on the company is US$13.44.

Source: Reuters

Advertisement

Also worth reading

Advertisement