Shares of GameStop Corp continued to fall sharply on Wednesday, with last week’s massive peak becoming a mere memory.
Shares listed on Tradegate, Germany, fell to $ 71.99, down approximately 20% from New York’s Tuesday closing price of $ 90.
GameStop, the child of community on Reddit who wants to push out short sellers, fell 60 percent on Tuesday, losing more than $ 27 billion in market value last week – to $ 483 a share. Several other favorites in the Reddit community – including AMC Entertainment and Express Clothing retailer Inc – also declined.
GameStop’s rapid retreat coincided with a sharp decline in short traders’ interest after bear investors appeared to be covering their positions. This eased the pressure on stocks caused by day traders who used Reddit forums to promote and buy stocks in adverse conditions, which also included American Airlines Group Inc. and BlackBerry Ltd.
To date, GameStop has lost more than 80% of its profits, which were supported by last month’s attack on short sellers. Even with the recent decline, however, a retailer based in Grapevine, Texas is still up 377% year-on-year.