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.