GameStop (GME.US) stock fell 60% extending yesterday losses as the speculative trade that prompted recent sharp gains, faded away. The video-game retailer’s stock has erased almost 80% of the spectacular gains from the end of January when retail traders on a Reddit forum sparked a short squeeze in the stock. Current market value has decreased by $26 billion to $7.4 billion from last week's intraday high.
This week declines are caused by sharp reduction in short interest after institutional investors appeared to cover their positions. That has loosened a squeeze on the stock caused by Reddit traders. Still GameStop shares are up more than 500% from where they started the year.
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Create account Try a demo Download mobile app Download mobile appOther stocks that retail investors were interested in lately are also trading under pressure: AMC (AMC.US) plunged 42% and at $7.5 is more than 50% below last week’s intraday high.
GameStop (GME.US) shares fell sharply this week and today price temporarily broke below $100.00 level. However buyers managed to find some support at 50 SMA (green line) and price again started to move higher. Source: xStation5
