GameStop Bubble Deflates Again, Pushing Weekly Collapse Past 80%

  • Video-game retailer tumbles to close at two-week low
  • Small drug developers take chat-room spotlights and surge
SEC Hunts for Fraud in Social Media Posts That Hyped GameStop
Lock
This article is for subscribers only.

GameStop Corp. capped another day of heavy losses, pushing its collapse past 80% this week as retail traders flocked to other corners of the stock market such as small drug developers.

The video-game retailer tumbled 42% on Thursday to $53.50, erasing nearly $30 billion in market value. Trading volume picked up after a slow start, with 60 million shares exchanged after selling accelerated throughout the session. The losses continued in after-hours trading, with the stock down 5.5% at 5:22 p.m. New York time.