The shares of GameStop Corp. they experienced another volatile session and trading stops on Tuesday, continuing a battle between short sellers and traders gathering on an internet messaging forum.
GameStop GME,
the shares were stopped on tuesday at 12:50 pm for about six minutes, the second stop of the day’s trading session, as the stock price fell to an intraday high of $ 114.24. Shares fell immediately after stopping, but then rose again less than an hour later, pushing prices to $ 124.58.
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The trading of the shares was stopped nine times on Monday, as the shares doubled to an all-time high of $ 159.18 before ending a violently volatile 18.1% session at $ 76.79. As of Monday’s close, GameStop shares had risen 334% since trading ended Jan. 8, pushing the company’s market capitalization to $ 5.4 billion, the highest value since the end of the 2007-09 recession.
GameStop was a nice reddit message forum for WallStreetBets, where hundreds of posters put pressure on stock purchases after investors who bet against the chain pushed short interest rates to over 100%. On Tuesday morning, profile investor Chamath Palihapitiya publicly joined the party by purchasing call options that were in the money after the second sharp rise of the day.
For more information: Reddit moderator beats Wall Street “fat cats” as GameStop’s wild ride continues
Short sellers targeted GameStop shares as the pandemic added to problems with online sales moving. Citron Research shortstop Andrew Left released a video late Thursday describing why GameStop should be a $ 20 share, then withdrew and claimed he and his family were threatened. Shares began to rise in the middle of the month, up 57% on January 13, with five of the next seven trading days recording daily gains of 10% or more, despite a disappointing earnings ratio from the retailer.
GameStop did not release any news that coincided with the tip and did not respond to a request from MarketWatch to comment. The Securities and Exchange Commission declined to comment Monday on any possible investigations into the transaction.
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Earlier this month, GameStop acknowledged that sales during the holiday quarter fell by more than 25% and came in less than expected. In the last two quarters, the company’s losses expanded significantly after its April 2020 quarter, when GameStop reported an adjusted loss of $ 1.61 per share from its 7 cents per share earnings in the quarter. previous.