GameStop’s share has caught the attention of financial regulators, lawmakers and the White House over possible market manipulation, with a staggering 81 percent days after reaching an all-time high of $ 483 USD. As the momentum spurred by traders on r / WallStreetBets slows down, the company’s share is now less than $ 100 USD.
The sharp decline shows that large hedge funds under pressure closed their short positions after the Reddit rally, and many investors trying to monetize the recent rise suffered huge losses. Other stocks that recently peaked also fell, with AMC Entertainment down from $ 20 USD per share to just $ 6.50 USD and Blackberry thereafter to $ 11 USD from $ 28 USD.
Mike Mullaney, Director of Global Markets Research at Boston Partners, said: “This is likely to happen – it goes back to the age-old premise that the stock market is finally being driven to the edge of the world by greed and fear … I feel bad for anyone who has jumped on the buying side of this trade in the past week. ”
If you miss it, the silver price rises to a peak of eight years, but r / WallStreetBets says it is not behind the rally.