what happened
Shares of GameStop (NYSE: GME) rose on Friday after a sharp drop in the share price of the video game seller of the recent highs last week. Towards the end of the trade, GameStop’s share price rose 19.2% after rising 77.6% earlier in the day.
Approximately
After an epic short press, the share price of GameStop rose to $ 483 on January 28 – up from $ 18.84 on December 31 – the stock began to sell. Trading restrictions imposed by Robinhood and other brokers, which limited how many GameStop shares investors could buy, undoubtedly contributed to this.
GameStop’s share recovered from recent losses on Friday. Image Source: Getty Images.
After his customers suffered a setback and received heavy criticism from leading lawmakers – some of whom called for an inquiry into his decision to restrict trading in GameStop and other stocks – Robinhood lifted its trading restrictions on GameStop on Friday. As their ability to buy the stock recovered, many GameStop bulls took the opportunity to acquire more shares.
Now what
Although GameStop’s share price recovered today, the struggling video game retailer remains a high-risk investment. Downloading digital games poses a serious threat to GameStop’s network of retail stores and is likely to put pressure on its sales and profits in the coming year.