GameStop (GME) Stock Price and News: Plunge continues as retail investors wave the white flag

NYSE:GME has easily been the most talked-about stock of 2021 and, although its popularity has certainly been on the rise, the stock price has been rapidly on the decline. Since it peaked at $483 a few weeks ago, GameStop is now down nearly 90% as the stock closed Thursday’s trading session at $51.10. The GameStop debacle has prompted numerous investigations by regulatory agencies, including the Justice Department and the SEC, and it is not just the institutional investors that are being looked at. Some members of the Reddit subgroup r/WallStreetBets are also being investigated, including well-known member Roaring Kitty. 

The Reddit short squeeze will go down in history as a momentous standoff between retail investors and hedge fund managers, unfortunately, the movement seems to have lost all its momentum. Daily trading volume of GameStop is well below its daily average, which could point to either Redditors continuing to hold, or perhaps more realistically, that investors have moved on from the stock. The worst part of the whole saga is that there is an entire group of retail investors who are stuck holding the bag with shares of GameStop and AMC (NYSE:AMC), and may never be able to recover that lost money. 

GME stock news

These investors may not be the only ones who lost an opportunity to cash in, as GameStop itself reported it did not liquidate any shares even as its stock surged. The company was concerned about regulatory punishment that may have come had it cashed in on the squeeze, so GameStop may have lost out on a once in a lifetime opportunity to raise a boatload of capital.