GME Stock News: GameStop Corp breaks support as meme stock sector takes a dive

NYSE:GME fell by 5.74% during Tuesday’s session.
Citadel Securities and Robinhood are hit with a class action lawsuit from investors.
Another analyst gave a price cut for GameStop and reiterated a sell rating.

Stocks Reporter FXStreet

NYSE:GME may finally be running out of lives as the stock backed by Roaring Kitty and the rest of r/WallStreetBets dropped yet again. On Tuesday, shares of GameStop fell by 5.74% and closed the tumultuous trading session at $178.60. The video game retailer has seen its stock lose nearly 15% over the past month as meme stocks have fallen in and out of popularity with retail investors. GameStop has seen most of its trading volume wane as of late, as newer meme stocks like Vinco Ventures (NASDAQ:BBIG) and ContextLogic (NASDAQ:WISH) have emerged as more alluring targets for a short squeeze.

Stay up to speed with hot stocks' news!

The never ending saga of the GameStop Reddit short squeeze from earlier this year is once again rearing its head. Last week a class action lawsuit was filed against Citadel Securities and Robinhood (NASDAQ:HOOD) by a group of retail investors. The suit claims collusion between Robinhood CEO Vlad Tenev and Citadel Securities founder Ken Griffin to restrict trading of GameStop and AMC (NYSE:AMC). The two parties have both taken to social media to dispel these rumors and are fighting back in an attempt to clear their names from these allegations.

GME stock forecast

On Monday, another Wall Street analyst joined in on throwing shade at GameStop’s stock. Ascendiant Capital Markets reiterated its sell rating for GameStop, and cut the price target for the stock to a staggering $24. This is more than 80% lower than its current trading levels, which the firm states is built entirely upon its popularity in internet discussion forums.

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Stocks Reporter

FXStreet

EUR/USD weakens below 1.1700 as Middle East tensions drive US Dollar strength

The EUR/USD pair trades with mild losses around 1.1685, the lowest since late January, during the early Asian session on Tuesday. The US Dollar gathers strength against the Euro as escalating tensions in the Middle East boost safe-haven currencies. The preliminary reading of the Harmonized Index of Consumer Prices from the Eurozone will be published later on Tuesday.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold clings to gains as US-Iran conflict continues to underpin safe-haven assets

Gold retains positive bias for the fifth consecutive day on Tuesday as rising geopolitical tensions in the Middle East continue to underpin safe-haven assets. However, a bullish US Dollar could keep the bullion below its highest level since late January, set on Monday, warranting caution before positioning for any further appreciation.