GameStop’s shares took a volatile turn in trading on Monday after last week’s multi-session meme stock rally, which has accumulated massive gains.
Shares in the video game retailer rose early in the day, up about 7 percent after the opening bell, but reversed the gain to plummet almost 16 percent to $ 223 around 11:20 am.
The sudden drop supposedly caused GameStop trading to be halted because of volatility, before stocks rebounded early in the afternoon. I recently had a discount of about 5.5 percent at $ 250.01 at 1:34 pm
The violent session came after a week in which GameStop’s stock price rose 92 percent and reached levels never seen since the market frenzy in late January that rocked Wall Street.
Monday’s wild moves did not intimidate many novice traders on Reddit’s WallStreetBets forum, which made the Texas-based chain synonymous with the retail investment revolution.
Some users said they planned to grab GameStop stock with the $ 1,400 stimulus payments – or “stimulating” checks – that the feds started pouring into Americans’ bank accounts over the weekend.
“Jokes about hegies, this volatility makes me feel alive,” wrote a Redditor called __Cofi__ on Monday, incorrectly writing slang for hedge fund investors. “Buying 5 more shares. And my stimulus hasn’t even arrived yet! “
The posts echoed a recent survey by Deutsche Bank that found that about half of retail traders between the ages of 25 and 34 planned to put 50% of their stimulus money into stocks.
GameStop’s stock price also went up like a roller coaster last week, but ended up recording strong gains after the company announced it had hired Chewy.com founder Ryan Cohen to lead its move to e-commerce.
Bulls believes Cohen, who joined GameStop’s board in January, will help transform it from a traditional retailer into a successful digital gaming business.
Social media marketers tried to get hints about Cohen’s role in the company in his cryptic Twitter posts. The most recently, posted Thursday night, presented a GIF of the character of Jeff Daniels from the 1994 film “Dumb and Dumber” sitting on a toilet with his pants around his knees and his feet raised.