GameStop (NYSE:GME) Freefall Continues Despite Lifting Restrictions

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GameStop (NYSE:GME) Freefall Continues Despite Lifting Restrictions

 GameStop (NYSE:GME) Freefall Continues Despite Lifting Restrictions

Summary

  • GameStop stocks dived over 300 per cent in last 30 days.
  • Six more hedge funds added to a California lawsuit alleging conspiracy to prevent trading.
  • GME stocks were trading at US$63.77 at close on Friday.

Video games retailer GameStop Corporation ended a disastrous week on Friday as stocks continued to dive despite the easing of online trade restrictions.

The retailer failed to make a comeback to the previous week’s highs even after the curbs on online trading imposed by Robinhood Inc. and others were lifted.

Its stocks were trading at US$ 63.77 at close on Friday, which was 19 per cent down from the previous close. The stock value declined by more than 71 per cent this week.

GameStop stocks closed at a record high of US$325.2 on January 27, 2021, after the online traders on the Reddit forum had placed big bets on the scrips.

The stocks were down by almost 17 per cent in the last 10 days, over 260 per cent in the last one month. Also, some 85 million shares were traded in the last 10 days.

Image Source: Shutterstock

Meanwhile, a lawsuit filed by a group of retailers at a federal court in California against some of the online trading platforms has been amended to add six more funds.

These platforms have been of preventing the online customers from buying GME and other stocks, such as Blackberry (NYSE: BB, TSX: BB), AMC Entertainment (NYSE: AMC, AMC: US), and Nokia (NYSE: NOK, NOK:US), which were perceived to have increased market volatility.

So far, 10 brokerages have been included on the list: Robinhood Inc., Citadel, and Melvin Capital, among others.

The consumer cyclical company, which operates across Europe, Canada, Australia, and the US, had reported a 4.8 per cent increase in store sales and 309 per cent increase in e-commerce sales during the nine-week holiday period ending January 2, 2021. 

Its net sales were worth US$1.770 billion, a 3.1 per cent decrease compared to 2019, as a result of the pandemic.

GameStop sells video game hardware and software, as well as accessories through its stores.

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