GameStop shares were seen on Monday in volatile trading, after the multisession rally of the beloved meme, which accumulated massive gains.
The shares of the video game retailer increased at the beginning of the transactions, increasing by about 7% after the bell opened, but then reversed the gain to decrease by almost 16% to 223 USD around 11:20.
The sharp drop caused trading on GameStop to stop for volatility before shares rebounded in the early afternoon. It recently fell about 5.5% to $ 250.01 as of 1:34 p.m.
The milling session came after a week in which the price of GameStop shares rose by 92% and reached unseen levels due to the market frenzy at the end of January that shook Wall Street.
Monday’s wild moves did not surprise many newcomers to Reddit’s WallStreetBets forum, making the Texas chain synonymous with the retail investment revolution.
Some users have said they plan to buy GameStop shares with $ 1,400 incentive payments – or “stimmy” checks – that the feds began falling into Americans’ bank accounts over the weekend.
“Jokes on the hedge, this volatility makes me feel alive,” a Redditor named __Cofi__ wrote on Monday, miswriting a slang term for hedge fund investors. “Buying another 5 shares. And my stimmy hasn’t even arrived yet! ”
The posts echoed a recent Deutsche Bank survey, which found that about half of retailers between the ages of 25 and 34 intend to put 50 percent of their incentive in stocks.
The price of GameStop shares also moved like a roller coaster last week, but came to record strong gains after the company announced it was turning to Chewy.com founder Ryan Cohen to lead the transition to e-commerce.
The Bulls believe that Cohen, who joined GameStop’s board in January, will help turn him from a retailer into a successful digital gaming business.
Social media marketers have been trying to get clues about Cohen’s role in the company from his cryptic Twitter posts. The most recent, posted Thursday night, presented a GIF of Jeff Daniels’ character from the 1994 movie “Dumb and Dumber” sitting on a toilet with his pants around his knees and legs in the air.