GameStop Corp, a gaming company in the news lately because of a number of Redditers showing interest in its shares, witnessed a drop in shares below the $100 milestone. The shares cascaded to $75 at 11 am in New York.
This means the company has given up on 85% of spectacular gains that were caused in the past four weeks because of many people having a go at the short sellers. The market value of the company decreased from above $28 billion to $5.8 billion. Other stocks that were invested in by people from the Reddit community like the stocks of Express Inc. and AMC also sharply declined. AMC saw a 53% decline while Express Inc. declined 43%.
The decline is because short sellers have decreased interest after undergoing huge losses. GameStop shares dropped despite relaxing restrictions on number of shares can that be brought on Robinhood Markets Inc.