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The actions of GameStop Corp. Wednesday were on track for their highest ever closing price and longest winning streak since the video game retailer’s action became the poster child for Reddit-inspired investing frenzies, but a sudden drop in the share price and a halt in trading darkened the photo around noon.
GameStop GME,
The shares traded 5% to 36% above Tuesday’s close in Wednesday morning’s session, including breaking above the share’s record Jan 27 close at $ 347.51. They were on track for a six-day streak, the longest since September 3, 2020, when the stock ended eight days in a row, according to Dow Jones Market Data Group.
This was long before GameStop action became a household word starting in January, when buy and hold investors on Reddit’s WallStreetBets forum rallied against Wall Street companies betting heavily against it. stock, making it one of the best-selling stocks. Recently, an analyst established a strong correlation between the volume of chatter on WallStreetBets and the GameStop stock price.
However, prices plunged just after noon, losing more than $ 100 a share in a matter of minutes and falling below Tuesday’s closing price of $ 246.90. Trading was halted five times between 12:20 p.m. and 12:50 p.m. EST as prices plunged. Other stocks that were shrouded in the Reddit frenzy appeared to show similar patterns on different scales on Wednesday: AMC Entertainment Holdings Inc. AMC,
Koss Corp. KOSS,
Blackberry Ltd. BB,
and Nokia Corp. SUFFICIENT,
NOKIA,
equities also saw the gains in the morning session suddenly disappear after noon.
By noon, GameStop trading volume had exceeded 32 million shares, compared to a 10-day average daily volume of 59.5 million and a 52-week average daily volume of 14.9 million. The company commanded its highest market cap since January and currently holds a valuation of over $ 23 billion. Last week, GameStop settled just under a $ 10 billion cap, after a weekly gain of 35%.
Previously, GameStop had recorded its second best week with a gain of 150%, compared to its weekly rally of 400% at the end of January. The top four weekly gains for the stock occurred between a six-week span in 2021, with investors targeting the stock en masse.
GameStop’s fourth quarter results, which includes holiday sales, are scheduled for March 23 after markets close. In January, the company gave a snapshot showing ecommerce sales jumped more than 300%, but overall sales declined during the holiday season.
GameStop shares have grown over 1,700% this year alone, and over 8,000% in the past 12 months. By comparison, the S&P 500 SPX index,
increased by 4% in 2021 and 35% in the past 12 months.
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