The shares of GameStop Corp. they experienced another volatile session and trading stops on Tuesday, continuing a battle between short sellers and traders gathering on an Internet message board.
GameStop GME,
shares stopped at 12:50 p.m., Eastern Time, on Tuesday for about six minutes, the second trading stop of the session of the day, as the stock price dropped to an intraday high of $ 114.24 . Shares declined immediately after the arrest, but experienced a further rise less than an hour after it pushed prices up to $ 124.58.
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Stock trading stalled nine times on Monday as shares doubled to an all-time high of $ 159.18 before ending a violently volatile session, up 18.1%, at $ 76.79. As of Monday’s close, GameStop shares had risen 334% since the end of trading on Jan. 8, raising the company’s market capitalization to $ 5.4 billion, the highest since the end of the recession. of 2007-09.
GameStop has been an estimate on Reddit’s WallStreetBets message board, where hundreds of posters have been pushing to buy the shares after investors betting on the chain raised interest rates by more than 100%. On Tuesday morning, renowned investor Chamath Palihapitiya publicly joined the party by buying call options that had money after the second sudden rise of the day.
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Short sellers have been targeting GameStop stocks as the pandemic adds to problems related to online sales. Famous short salesman Andrew Left of Citron Research released a video Thursday afternoon explaining why GameStop should be a $ 20 share, then he withdrew and claimed he and his family had been threatened. Shares began to rise in the middle of the month with a 57% rise on January 13, with five of the next seven trading days recording daily gains of 10% or more despite a disappointing preliminary earnings report from the retailer.
GameStop has not posted any news matching the upload and has not responded to a MarketWatch request for comment. The Securities and Exchange Commission declined to comment Monday on possible investigations into the trading.
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Earlier this month, GameStop admitted that sales for the quarter fell more than 25% and fell short of expectations. In the last two quarters, the company’s losses have expanded significantly, after the final quarter of April 2020, when GameStop reported an adjusted loss of $ 1.61 per share compared to 7 cents per share of profits he had reported in the previous year’s quarter.