All the way down! GameStop shares dip 20%, lowest levels since Jan 27

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GameStop tumbled about 85% to near $40 (Rs 2,914) a share since January 27. (Photo: AP)

As shares fell on Tuesday, talks of the stock market was notably muted on Reddit.

It came as shares of GameStop tumbled nearly 20 per cent on Tuesday. It was lowest levels of the video game retailer since the start of a retail investor-led surge that echoed across Wall Street.

A strategy to squeeze hedge funds

There was a part of a strategy to squeeze hedge funds that had taken a short bet on the retailer, too!

Investors, who followed the WallStreetBets — a popular Reddit forum — helped push shares of GameStop to a closing high of $347.51 (Rs 25,323) on January 27, 2021. Since then, GameStop has tumbled about 85 per cent to near $40 (Rs 2,914) a share.

S&P 500 flat in afternoon trading

Other Reddit favourites tumbled alongside GameStop, with AMC Entertainment Holdings Inc — an American movie theatre chain headquartered in Kansas’ Leawood and the largest movie theatre chain in the world — shedding nearly 12 per cent, and BlackBerry Limited dropping nearly 4 per cent. The benchmark S&P 500 — a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the US — was flat on Tuesday afternoon trading.

The average price target of analysts tracked by Refinitiv on the company is $13.44 (Rs 979.37).

(With inputs from agencies)

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