GameStop’s stock plummeted on Tuesday, losing more than half its opening value and dropping to its lowest level in a week.
GameStop’s stock plummeted to $ 90 at the end of Tuesday’s trading, a 60 percent loss that reduced $ 135 from its opening price.
GameStop’s stock has fallen steadily since Thursday, after reaching a peak of $ 483, about 1,800% more than its price earlier this year.
The brutal two-day period for GameStop could be the death sentence for a crusade organized by Reddit against hedge funds that spent billions selling distressed retailer shares, betting that they would continue to lose value.
Members of the Reddit r / WallStreetBets subforum raised GameStop’s stock price, continuously buying shares in an attempt to tighten up before the momentum started to subside.
GameStop’s losses also came on a strong day for the general market, with all three major US stock indexes closing on Tuesday with gains of around 1.5 percent. Other actions targeted by Reddit traders for short sales also faltered on Tuesday, including AMC Entertainment (down 2.6 percent), BlackBerry (1.4 percent) and Nokia (0.7 percent).
It remains to be seen whether GameStop’s shares recover, given the incredible volatility driven by high viruses and the devoted nature of some buyers. Even so, GameStop’s shares continued to lose value in trading after the closing of the exchange, resulting in additional losses on Wednesday.