Free Trial

GameStop shares head sharply lower for second straight day

Pedestrians pass a GameStop store on 14th Street at Union Square, Thursday, Jan. 28, 2021, in the Manhattan borough of New York. GameStop shares are on track for their biggest one-day loss ever, extending a skid that’s cleaved off some of its recent blockbuster gains following a social-media led campaign to get the videogame retailer’s stock to skyrocket. Shares were down 46% to about $120 in morning trading Tuesday, Feb. 2, following a 31% decline a day earlier. (AP Photo/John Minchillo, File)

GameStop shares fell by half in afternoon trading Tuesday, cleaving off more of the stock’s recent blockbuster gains following a social-media led campaign to get it to skyrocket at the expense of big Wall Street funds.

Shares were down 50.6% to about $110 apiece as of 1:30 p.m. Eastern, following a 31% decline a day earlier. The stock closed out January at $325 a share, far above the $17 it fetched at the beginning of the year.

The pullback is the latest example of the extreme volatility that's marked GameStop's meteoric run. Last week a 44% drop on Thursday was followed by a 68% jump Friday. The extreme moves have been driven by a frenzy of speculative trading and appear to have little to do with the actual prospects of the company, which has been losing money consistently.

The business model of the mall-based retailer of physical copies of video games has taken a beating as fewer people go out shopping in malls and as more people download video games instead of buying them in stores.

Investors on Reddit and other social media portals have banded together in recent weeks to snap up shares of GameStop, AMC and other struggling chains, stocks that several Wall Street hedge funds had bet would fall. Some of those hedge funds have now admitted defeat and walked away from those bets in a stunning reversal of financial power on Wall Street.

The number of GameStop shares that have been shorted (bets that the stock will fall), were slashed by more than half in recent days, according to a report Monday by the analytics firm S3 Partners.

Shares in some stocks that have also been hyped by some traders on Reddit were also down Tuesday, bucking the broader market's rally. AMC Entertainment fell 41.4%, headphone maker Koss Corp., slid 39.5% and BlackBerry dropped 19.1%. The S&P 500 index, meanwhile, was up 1.6%.

Should You Invest $1,000 in Koss Right Now?

Before you consider Koss, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Koss wasn't on the list.

While Koss currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

7 Stocks to Buy And Hold Forever Cover

Enter your email address and we'll send you MarketBeat's list of seven stocks and why their long-term outlooks are very promising.

Get This Free Report
Like this article? Share it with a colleague.

Companies Mentioned in This Article

CompanyMarketRankâ„¢Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Koss (KOSS)
1.1831 of 5 stars
$5.253.8%N/A-65.63N/AN/A
Compare These Stocks  Add These Stocks to My Watchlist 

Featured Articles and Offers

Recent Videos

The Next NVIDIA? Quantum Computing Stocks Set for Explosive Growth
5 Stocks to BUY NOW in July 2025
3 Defense Stocks Under $10 With Massive Upside

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines