GAMESTOP stock has plunged by over half and AMC has plummeted as the Reddit army phenomenon winds down.
The gaming company fell as much as 55 percent on Tuesday, after experiencing a 31 percent drop the day before.
This means that the stock is down a total of 79 percent from an all-time-high of $483 after surging over 2000 percent last month.
AMC Entertainment also saw a huge drop, with the movie-theater company falling 43 percent.
This is down 63 percent from the recent high of $20.36.
The trading frenzy began in late January, when small-time investors began buying up shares in GameStop, a loss-making video games retailer.
GameStop shares surged 700 percent last week as amateurs, inspired by tips shared on social media, piled into the stock .
But it now seem the share price has sharply declined.
Despite the plummeting price, many of the message board’s 8.2 million members pledged to hold onto their GameStop shares.
Members pledged to do so to spite the hedge funds that bet against the stock.
Reddit users’ efforts to pump up the shares have already led to hefty losses for funds such as Melvin Capital and Point72, reports the NY Post.
Smartphone maker-turned-software firm BlackBerry dropped 9.2 percent in premarket trading on the heels of a 3.7 percent gain.
Meanwhile, Finnish telecom firm Nokia fell about 2 percent.
GameStop, AMC, Blackberry and Nokia stocks are among eight that were subject to trading restrictions on the Robinhood investing app this morning.
Last week, several Robinhood users reported problems with the platform after the investment company clamped down on GameSTop and AMC stocks.
The platform claimed shares were too volatile following huge price swings pushed by a Reddit group.
However, Robinhood has relaxed the limits in recent days.
More to follow…
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