GameStop's stock price saw a huge downfall of up to 81 percent due to the WallStreetBeds traders being on a toll from the past few days, making the company's stock price at around $100.
Hypebeast mentioned that GameStop somehow lost the game of securing such money funds from the big playing investors. It was then the root cause of the once on the high roll stock price of $483, and now weeping down to just a hundred bucks per stock share.
How GameStop's Stock Price Downfall Began
The downfall of the stock price of the game store company began to happen when a barrage of Reddit posts known as the infamous rally suddenly took place over the trouble that is being seen on to the video game retailer's shares as well as the others that were also counted in.
With that being said, the price of GameStop's stocks was merely affected by it quickly. It was also being signified that the company's shares could somehow been borrowed for the purpose of selling it in another way. Some even specified that the hedge funds were being squeezed, that ahs caused the shares of the company to make its way on top.
Majority of the investors fully understands how it could be contradicting in the part of GameStop's fundamentals and practices to their stock price. Yet the rise of mobile gaming as well as the emergence of digital downloads for video games all around the world became factors that inflicted the company's gradual decline of their sales even before this year's stock performance for GameStop.
SEC Actions and Possibilities
Another angle and possibly that might take place is courtesy of the US Securities and Exchange Commission or SEC's acting chairwoman Allison Herren Lee. As per CBS News, Lee told NPR that they have been considering other various angles regarding the behavior of GameStop's stocks, wherein a sudden rise then led to a downfall of some sort of unexpected one.
It lists the possibilities manipulating the actual market in order to lean the sto9ck performance towards their desired outcome. Another thing would be the brokers' intentional actions on acting with an appropriate manner as well.
She ended her statement by issuing a warning to those companies being involved or inclined within those possibilities she mentioned, by which they could be aware of conducting those for the purpose of raising money through selling the actual shares. And those were priced at a cost heavily influenced by traders who are rampant with their presence on various social media platforms and sites.
GameStop's already long history began way back in 1984 with the name of Babage's. It became GameStop by the year 2000, and since then blossomed on to one of the biggest video game retailer stores and companies not just in the US but also in the world today. Yet with the issues such as those mentioned above, the future of the company would surely be affected as well.
