GameStop Corp shares saw another choppy session and trading halted on Tuesday, to continue the battle between short sellers and traders gathering on an online message board.
GameStop GME,
Stocks stopped at 12:50 PM ET on Tuesday for about six minutes, which is the second trading halt in today’s session, as the share price fell to an intraday high of $ 114.24. Shares tumbled immediately after stopping, but then saw another rally after less than an hour pushed prices to $ 124.58.
Also read: How the craze of options trading raises stocks and fuels fears of a market bubble
And trading in the stock was suspended nine times on Monday Shares more than doubled to an all-time high of $ 159.18 before ending a volatile session Up 18.1% to $ 76.79. During Monday’s close, GameStop’s stock was up 334% since the end of trading on January 8, pushing the company’s market value to $ 5.4 billion, the highest level since the end of the 2007-2009 recession.
GameStop was a darling of the Reddit WallStreetBets message board, as hundreds of posters were pushing to buy shares after investors betting against the chain pushed the short interest over 100%. On Tuesday morning, prominent investor Chamath Palihapitiya publicly joined the party by purchasing call options that were in the money after the day’s second sudden rise.
For more: The Reddit broker slams „fat cats” on Wall Street as GameStop’s wild ride continues
Short sellers have targeted GameStop stocks as the pandemic increased sales problems that were transmitted online. Popular short seller Andrew Left of Citron Research A video was released late Thursday setting the points on why GameStop should be $ 20, Then he withdrew and claimed that he and his family had been threatened. Shares began to rise in the middle of the month, up 57% on January 13th. With five trading days out of seven recording daily gains of 10% or more nonetheless Disappointing initial earnings report from retailer.
GameStop did not release any news to coincide with the spike, and did not respond to a request from MarketWatch for comment. The The Securities and Exchange Commission declined to comment on Monday About any potential trading investigations.
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Earlier this month, GameStop admitted that The holiday quarter’s sales fell more than 25% and were below expectations. Over the past two quarters, the company’s losses have expanded significantly, following the quarter ending in April 2020 when GameStop reported an adjusted loss of $ 1.61 per share versus the 7 cents share in earnings it reported in the previous quarter.
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