The GameStop stock price rollercoaster hit another big dip on Tuesday. After several weeks of investors buying low and selling high, GameStop’s once sky-high price dropped by more than 60 percent by the close of business.
The saga of the video game retailer’s stock market fortunes began last week when an investment subreddit, r/wallstreetbets, made it their goal to drive the price of GameStop’s stock through the roof. Over the next few days, the price went up and down steadily, as the market attempted to adjust to the fluctuations. At one point, even individual investment entities like the Robinhood App attempted to stop the ups and down by suspending trading. That company even went so far as to first only allow users to sell the stock, and eventually sold their customers’ shares for them.
On Tuesday, GameStop‘s stock opened trending downward yet again. However, ScreenRant reported several high-powered investors including Dallas Mavericks owner Mark Cuban tried to rescue the share price. Their intervention briefly saw the company rebound and the price briefly topped $100 per share in the afternoon.
The rise saw GameStop go from $80 to more than $100 in a matter of moments and some stock experts wondered if the retailer’s price was once again going to start going through the roof. At its Tuesday peak, it hit $137, which was nearly double of its opening price but still a rather sharp decline from the $411 it saw the previous week. It was also well below what had been a previously steady range right around $300, making several of the GameStop early investors quite a bit of a profit.
The Tuesday afternoon rally was relatively short-lived. Even with the likes of Cuban attempting to drive up the stock price, it eventually slid down, eventually closing at $90 per share. The end price meant GameStop saw that 60 percent drop cost those who might have held onto their stock for the entire day, lose $135 per share. Trading continued downward even after US markets closed, dropping more than four percent over the evening.
The quick rise and then fast fall for the retailer’s share price has caused shockwaves in the financial sector over the last few weeks. The situation has even drawn so much attention that not one, but two movies are planned to show GameStop’s quick rise and then steep fall over a relatively short period of time. The question some believe needs to be answered as the company seems to be reaching the end of the rollercoaster ride, is just how solid a footing will GameStop have in the aftermath.
Source: ScreenRant, Google Finance
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