US Stock Prices Today: GameStop shares fall 30%, Dow Rises More Than 300 Points
|US Stock Prices Today: GameStop shares fall 30%|
Shares of GameStop, the center of a trading frenzy fueled by a by mentions in a Reddit chat room, were down sharply on Thursday after brokers restricted trading on the stock.
GameStop Stock Prices was down 36% from Wednesday’s closing price to $221 per share shortly after 1 pm ET. Earlier in Thursday’s session, it was up over 25% and down more than 50% as trading was halted several times.
The Robinhood app, popular among new and young investors, restricted transactions for certain securities, including AMC, BB, BBBY, EXPR, GME, KOSS, NAKD and NOK, according to a press release. TD Ameritrade also restricted certain transactions.
The Securities and Exchange Commission said Tuesday that it has noticed the volatility in the market, though it did not name GameStop specifically. The agency said it’s “working with our fellow regulators to assess the situation and review the activities” of investors in the market, AP report.
According to CNBC, one trending post Thursday said “don’t be scared of the drop in $GME $BB. Hedge funds trade after hours to scare y’all...KEEP BUYING AND HOLDING.” The post quickly drew more than 1,000 comments in an hour.
Another top post in the community said “buy high, sell never,” featuring a photo of GameStop.
Some of the passionate Reddit users have been sharing screenshots of their brokerage accounts, showing monstrous returns from trading in GameStop and other names.
GameStop's stock had been struggling for six straight years before a slight surge in 2020 and its most recent explosion.
|Gamestop stock in Madness|
Like most stores that still sell products in person, Gamestop has had a hard time lately as video game sales have moved online and as the Covid-19 pandemic keeps people away from stores. It's still in business, but few people expect it to grow again.
The stock surged briefly in August after Chewy founder Ryan Cohen purchased a 9% stake in the company. In October, the company partnered with Microsoft to expand its "physical and digital video game offerings".
After the Reddit user then suggested a short squeeze, smaller investors exhorted each other online to keep GameStop's stock rolling higher as short-sellers were betting against it.
|The Reddit crowd started targeting other heavily shorted names including Bed Bath & Beyond and AMC Entertainment. |
AMC skyrocketed 300% on Wednesday alone, bringing its weekly rally to over 450%. In the previous session, more than 1 billion shares changed hands in AMC, marking its highest volume day ever. Bed Bath & Beyond has also surged 75% this week. The duo dipped slightly in premarket trading on Thursday.
Stock Market Today update news
Stocks rose, shaking off the prior day’s steep declines after new economic data showed a bigger dip in new unemployment claims than expected. Stocks jump, Dow adds 300 points, or 1%, to recover after worst session in three months.
Each of the S&P 500, Dow and Nasdaq gained more than 1% intraday on Thursday after logging their biggest drops since October on Wednesday. The Dow outperformed with a jump of more than 600 point, or 2%, led by shares of Walt Disney and Intel.
Weekly unemployment claims pulled back by 67,000 from the prior week’s elevated levels, dipping below 900,000 for the first time in three weeks. Still, new claims remained historically high compared to pre-pandemic levels.
According to Yahoo Financial, Tesla’s (TSLA) stock dropped more than 5% after the company posted profit that fell short of estimates, though revenue hit a quarterly record of more than $10 billion. Apple’s (AAPL) stock fell after CEO Tim Cook said during the company’s earnings call that he expected a second-quarter deceleration in wearables and services sales growth, overshadowing fiscal first-quarter revenue and earnings that topped expectations. Facebook (FB) shares gained, however, after the company topped user growth, sales and profit estimates, but warned about “significant uncertainty” over the ad environment in 2021 amid the pandemic.
Shares of some of the heavily shorted stocks that had been rocketing higher over the last several sessions were mixed. GameStop (GME) more than doubled on Wednesday but slid on Thursday, triggering a trading halt. Shares of AMC (AMC) sank 32%, following an extraordinary run-up of 300% during Wednesday’s regular trading day. BlackBerry (BB), Express (EXPR) and Bed Bath & Beyond (BBBY) – also darlings of Reddit’s r/wallstreetbets forum as of late – also declined.