GameStop rout erases US$27B as Reddit favourites lose steam
Michael Msika and Jake Lloyd-Smith, Bloomberg News
The surge in the price of silver was premature: TD Securities commodity head VIDEO SIGN OUT
GameStop Corp.âs rally came to a screeching halt this week as the shares had their biggest one-day loss on record, erasing more than US$27 billion in market value from their high.
The stock, which has been the poster child for Redditors looking to squeeze short sellers, fell 60 per cent Tuesday, closing below US$100 for the first time in a week. Several other Reddit favorites including movie-theater chain AMC Entertainment Holdings Inc. and clothing retailer Express Inc. also tumbled.
GameStop swings after new hires with Chewy founder on board
Bailey Lipschultz, Bloomberg News VIDEO SIGN OUT
The rally in GameStop Corp. shares showed further signs of losing momentum on Wednesday as the stock limped into the close even after news of a trio of executive hires, including the appointment of a chief technology officer.
The stock closed just 2.7 per cent higher Wednesday at US$92.41, after earlier rising as much as 26 per cent. A sell off at the start of the week has wiped out US$16 billion in market value from the company.
While the video-game retailer struggled in Wednesdayâs session, other parts of the market showed that Reddit-fueled retail traders were still driving double-digit gains for smaller companies, such as Tyme Technologies and Sellas Life Sciences.
GameStop Roller Coaster Pauses After $27 Billion Rout
Bloomberg 2/3/2021 Paul Jarvis
(Bloomberg) GameStop Corp.’s rapid reversal paused on Wednesday, although last week’s massive peak remains a distant memory after frenzied trading activity cooled.
Popular Searches
The stock rose 7% to $96.30 at 6:15 a.m. in U.S. premarket trading, still almost 80% below the record intraday peak of $483 set on Thursday after a community of day traders collaborated to take on the Wall Street establishment and inflict multibillion-dollar losses on hedge funds with large short positions.
“I think what we see in GameStop right now is a dead cat bounce,” Joachim Klement, a strategist at Liberum, said in emailed comments. “Retail investors may be coming back into the stock expecting it to reach old highs from last week. But with shorts so much lower than last week I think it will be very hard to impossible for another short squeeze to materialize in this stock right no
World Gold Council Does Not Expect Reddit Frenzy To Spill Into Gold
Wed, 3rd Feb 2021 16:31
(Alliance News) - The World Gold Council does not expect the Reddit-fuelled frenzy to spill over into gold after retail investors recently targeted silver, which hit an eight-year high early this week before plunging on Tuesday.
Gold market is more liquid and much bigger than silver, with around USD150 billion traded daily, John Reade, the chief market strategist at World Gold Council, said at the annual mining indaba in South Africa on Wednesday.
The World Gold Council is a non-profit association of the world s leading gold producers.
Winnipeg Free Press By: Bailey Lipschultz
GameStop Corp.’s rally came to a screeching halt this week as the shares had their biggest one-day loss on record, erasing more than US$27 billion in market value from their high.
GameStop Corp.’s rally came to a screeching halt this week as the shares had their biggest one-day loss on record, erasing more than US$27 billion in market value from their high.
The stock, which has been the poster child for Redditors looking to squeeze short sellers, fell 60 per cent Tuesday, and closed below US$100 for the first time in a week. Several other Reddit favourites including movie-theatre chain AMC Entertainment Holdings Inc. and clothing retailer Express Inc. also tumbled.