The GameStop stock roller coaster has come to an end

It hasn’t been a good day for WallStreetBets, as GameStop’s shares plummeted today. AMC, the other bet of the community, also fell. But, unlike previous declines, stocks don’t appear to be rising. Prices remained low throughout the trading day, something that hasn’t happened since WallStreetBets became a household name a week ago.

When the market closed today, the GameStop price was $ 90, a 81 percent drop from the GameStop’s $ 483 peak, and a 58 percent drop from its $ 218 price on Friday night. market. AMC also fell, closing today at $ 7.82, which is a 61 percent drop from its $ 19.88 peak.

It is hard to believe that in August last year GameStop was trading at $ 4.50. Between that week and last week, some investors bet that the stock was undervalued, bringing it to about $ 30. So, the WallStreetBets subreddit decided it would take the stock to the moon, punishing those who bet against it and trying to win money in the process. The idea of ​​buying for $ 4 a share and selling for $ 400 obviously captured the public’s imagination, and millions rushed to try to trade when the GameStop meme became popular – taking AMC and others on the ride while investors realized that they could pump those stocks too.

Chart: Apple Stocks

Chart: Apple Stocks

If this is the end of GameStop’s wild journey, it’s almost impossible to say. Last week’s spikes, falls and falls have been separated from the underlying businesses.

Part of this is the culture of WallStreetBets itself. Praising people for not selling their shares and ridiculing those who sell is a recipe for a community that will be stubborn. And now he begins to tell himself that the decline is due to the manipulation of the hedge fund market.

If this news made you feel like reading about other stock market antics, CNBC has an article that compares what is happening now with the Volkswagen short squeeze 2008 and the Recode has an interview with Henry Blodget, who was involved with the Dotcom bubble.

What about people who have suffered great losses from today’s dive? They are waiting for a high, so they can at least sell for what they bought. Some, like Dutch student Evan Oosterink, are counting on this – he bet about $ 10,000, which represented “his parents’ years of savings and some government loans for universities”, The Washington Post reported. He lost about $ 9,000 today, but is still holding on to the shares in hopes of recovering the loss. “Being part of WallStreetBets is like a religion that you are dedicated to,” he told The Washington Post.