Shares in GameStop plunged by 65% in early trading on Wall Street as the trading mania sparked by small investors, that sent its stock surging and cost hedge funds billions of dollars, lost momentum. From a report: The struggling Texas-based video game store chain has been the focal point of a battle by small traders, using forums such as Reddit, to punish Wall Street hedge funds that have bet on certain stocks falling in value. GameStop shares hit a high of $470 last Thursday but slumped to $80 shortly after the market opened. They recovered to $117 by mid-session, down 48% on their opening price. A year ago, shares in the 37-year-old chain, which plans to close 450 stores this year, were changing hands at $3.25 a share. Other heavily shorted stocks also targeted by amateur investors on influential forums such as WallStreetBets on Reddit are also in freefall. AMC Entertainment, the world’s biggest theatre chain and owner of Odeon in the UK, lost 55% shortly after the opening bell on Wall Street. It later made up some of those losses to trade at $8 by mid afternoon.
of this story at Slashdot.
Source:: Slashdot