GameStop Rout Erases $27 Billion
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 $27 billion in market value from their high.
The stock, which has been the focus of Redditors looking to squeeze short-sellers, fell 60% on Tuesday, closing below $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’s retreat has coincided with a sharp reduction in short interest after bearish investors appeared to cover their positions. That loosened a squeeze on the stock caused by day traders who used Reddit forums to tout and bid up out-of-favor stocks that also included American Airlines Group Inc. and BlackBerry Ltd.
“With GameStop, if you trade now you are presumably betting on what happens tomorrow or next week,” said Craig Birk, chief investment officer at Personal Capital. “There are online pleas to buy and hold, but this does not feel like a buy and hold situation.” (Read more from “GameStop Rout Erases $27 Billion” HERE)
Delete Facebook, Delete Twitter, Follow Restoring Liberty and Joe Miller at gab HERE and MeWe HERE
