GameStop’s stock dropped so much that it had to be stopped. This did not prevent settlement.

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GameStop

The stock dropped sharply on Monday morning, leading to a brief stop due to volatility. The stock fell more than 15%, to as low as $ 223.00, rebounded and then fell further.

Shares in video game retailer GameStop (ticker: GME) this month rose close to their levels at the end of January this month. At the close, GameStop’s shares fell 17% to $ 220.13.

The company said last week that

Rubber

(CHWY) co-founder Ryan Cohen and former Chewy executive Alan Attal joined Kurt Wolf, managing member and investment director of activist investor Hestia Capital Management, in a new board committee that aims to transform GameStop into a technology company.

Cohen started GameStop’s management by building a stake of around 13% in 2020 and urged the company to turn more to e-commerce offerings. He joined the company’s board with two associates in January, sending GameStop satellite dishes over the next few weeks. Analysts pointed to speculative option activity and the closing of some aggressive downward hedge fund bets.

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Last month, GameStop announced the planned departure of Chief Financial Officer Jim Bell. A person familiar with the subject told Barron’s when the company thought it was the right time and was looking for a new executive with a background in technology.

GameStop’s last race began after a February 18 congressional hearing on the trading of its shares and Robinhood. The audience included the participation of Keith Gill, a YouTube personality known as RoaringKitty, who gained followers for his successful long position in GameStop shares since 2019; Gill revealed in a Feb. 19 post that he doubled his stakes on GameStop.

While some analysts are optimistic about the company’s recovery prospects, the highest target price listed by FactSet is $ 33. This analyst, Joseph Feldman of the Telsey Advisory Group, pointed to concerns about the valuation, despite his ” high fundamental expectations and multi-year benefits projected with the transformation “.

The company said it will present results for the fourth fiscal quarter next week. Like other actions called memes preferred by retailers, these results pose a risk to the company’s skyrocketing. That said, trying to call a short-term top for GameStop was a foolish mission, especially for short sellers facing unlimited disadvantages.

Write to Connor Smith at [email protected]