GameStop stock drops 85% since peak as party “dies down”


GameStop stocks have now dropped 85 per cent since their peak last month as the Reddit-fuelled frenzy seems to have ended with a whimper.

The struggling video game retailer saw stock prices drop 20 per cent yesterday from $60 to just above $50 per share.

This is a dramatic drop from its peak on January 27 when prices topped $347.5, causing many short sellers to face billions in losses.

However, the David vs Goliath battle seems to have all but come to an end just weeks after an army of independent traders wreaked havoc on Wall Street.

READ MORE: Explained: GameStop vs Wall Street

One Reddit user wrote in r/WallStreetBets: “This really is like a party that’s dying down”.

Others remained more positive, stating that: “We already took off one time, anything is possible”.

Melvin Capital, a prominent Hedge Fun and GameStop short seller who lost 53 per cent due to the stock price surge and faced bankruptcy, secured a bailout of more than $2 billion to sure up its finances.

Meanwhile other stocks which were boosted by the Reddit group like AMC Entertainment Holdings and BlackBerry also saw their stocks drop.

GameStop is set to release its fourth-quarter earnings on March 25.

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