Video game seller has lost $32 billion in market value since Reddit group WallStreetBets sent its share into orbit.
GameStop shares resumed their recent slide on Tuesday, ducking below $50 in afternoon trade after having soared nearly 3,000% last month amid a social media-driven frenzy in the retailer’s stock. GameStop shares fell as low as $46.58 during the trading session before perking up to close at $50.31, down 16% on the day. The brick-and-mortar seller of video games has seen its market value plunge roughly $32 billion after the stock hit an intra-day high on January 27 of $483. Amateur investors on Reddit group WallStreetBets had snapped up GameStop, AMC Entertainment, BlackBerry, Nokia and other beaten down “meme stocks” that some traders said were undervalued by Wall Street hedge funds. Shares of theater chain AMC, which narrowly escaped bankruptcy after the coronavirus shuttered its theaters around the U.S., fell 11% to $5.52 on Tuesday and has sunk 73% since late last month. Nokia has dropped 57% since January 27. Broader markets wavered between small gains and losses in afternoon trading after the major stock indexes hit record highs the day before.
