GameStop's Stock Price Just Went on a Wild Ride

Small investors are taking on short-sellers
By Newser Editors and Wire Services
Posted Jan 25, 2021 3:48 PM CST
Dueling Investors Take GameStop on a Wild Ride
A woman wears walks past a GameStop store in Des Plaines, Ill., Thursday, Oct. 15, 2020.   (AP Photo/Nam Y. Huh, file)

Wall Street ended a choppy day with mixed results Monday as the market struggled to find direction. Apple and other Big Tech stocks lurched higher, then lower, then back up again. Several of them report their latest quarterly results this week. The S&P 500 climbed 0.4%, even though slightly more stocks fell than rose within the index. The Dow ended lower, while the tech-heavy Nasdaq rose. Traders are keeping a wary eye on rising coronavirus infections in various countries and a bumpy rollout of vaccinations in the US. The Dow Jones Industrial Average dipped 36.98 points, or 0.12%, to 30,960.00. The S&P 500 closed at 3,855.36, up 13.89 points, and the Nasdaq rose 92.93 points, or 0.69%, to a record high of 13,635.99.

GameStop, the video-game retailer that’s struggling to return to profitability, went on another wild ride, trading in a giant range between a low of $61.13 and a high of $159.18 in heavy trading volume. The stock was halted several times for volatility. Some high-profile investors have been saying its stock price was too high and placed bets to profit from an eventual drop by "shorting" it, or borrowing shares of GameStop and selling them. But a horde of smaller investors— pitching it as a battle of regular people versus hedge funds and big Wall Street firms—have kept the stock rising, forcing large investors to get out of their bets by buying the stock, pushing the price up further. The stock, which was trading at $17 at the beginning of the year, closed at 76.79 Monday.

(Read more stock market stories.)

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