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.

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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.

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