GameStop stock drops another 60% as buying frenzy “could slowly be ending”

GameStop shares have dropped another 60 per cent since yesterday as the Reddit-driven buying frenzy began to show signs of waning.

The US video game retailer which became the unlikely centre of a spat between Wall Street and an army of independent traders, saw stocks drop from $316.56 yesterday morning to around $115 on Tuesday afternoon (at the time of writing).

While this is still significantly higher than the sub-$20 share price GameStock held at the start of the month and will still be a worrying figure for many short sellers, some analysts believe it could be beginning of the end for the debacle.

OANDA market analyst Edward Moya said he believe trading chaos “could slowly be ending”, adding that like “all good rollercoaster rises, they all come to an end”.

Trading platform Robinhood, which controversially put significant restrictions on the trading of GameStop’s stock last week, has lifted trading limits from four shares to 20.

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It comes as its chief executive Vlad Tenev came under fire from financial authorities, the government and tech billionaire Elon Musk about the move.

According to Politico, Tenev will now testify before the House Financial Services Committee on February 18 regarding the action, while the Biden administration said “congressional attention is appropriate” to dig into the events in the stock market over the last two weeks.

Meanwhile the band of Reddit day traders responsible for driving up GameStop’s stock has turned its attention to Silver.

Reports have also emerged that movies about the events surrounding the retailers stock are already being rushed into production by Netflix and MGM.

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