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The actions of GameStop Corp. had another volatile session and trading came to a halt on Tuesday, continuing a battle between short sellers and traders gathering on an internet bulletin board.
GameStop GME,
Stocks were halted at 12:50 p.m. EST on Tuesday for about six minutes, the second hiatus of the day’s session, as the stock price hit an intraday high of $ 114.24. Shares fell immediately after the stop, but then saw another surge less than an hour later, which pushed prices to $ 124.58.
Also read: How an options trading frenzy lifts stocks and stokes fears of a market bubble
Trading in the stock was halted nine times on Monday as stocks more than doubled to an all-time high of $ 159.18 before ending a fiercely volatile session up 18.1% to $ 76.79 . Until Monday’s close, GameStop stock had risen 334% since the end of trading on Jan.8, pushing the company’s market cap to $ 5.4 billion, its highest since the close of the 2007-09 recession.
GameStop has been a darling of the Reddit WallStreetBets bulletin board, where hundreds of posters have prompted stock purchases after investors betting against the chain pushed short-term interest over 100%. On Tuesday morning, senior investor Chamath Palihapitiya publicly joined the party by buying call options that were in the money after the second sudden spike of the day.
Read more: Reddit moderator slams Wall Street’s ‘big cats’ as GameStop’s mad rush continues
Short sellers have targeted GameStop stocks as the pandemic added to problems with online sales. Short seller Andrew Left of Citron Research posted a video Thursday night explaining why GameStop should be $ 20 stock, then stepped down and claimed he and his family had been threatened. Shares began to rally mid-month with a 57% rise on Jan. 13, with five of the next seven trading days recording daily gains of 10% or more despite a disappointing preliminary report on the retailer’s earnings.
GameStop did not release any news to coincide with the peak and did not respond to a request for comment from MarketWatch. The Securities and Exchange Commission declined to comment on any potential trading investigation on Monday.
Don’t Miss: How You Could Lose Everything By Selling Stocks Short, Whether Against GameStop Or Tesla
Earlier this month, GameStop admitted that holiday quarter sales fell more than 25% and were below expectations. Over the past two quarters, the company’s losses have widened significantly, following its late April 2020 quarter, when GameStop reported an adjusted loss of $ 1.61 per share versus 7 cents per share in reported earnings. in the quarter of the previous year.
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