- NYSE:GME fell by 1.45% as inflation concerns caused the worst market sell off in months.
- GameStop continues to see low trading volume as the new SEC Chair fields questions about stricter regulations.
- GameStop’s Twitter account is reactivated with some tongue in cheek mentions.
NYSE:GME has seen its downward trajectory gain momentum as the stock nears a key level of support at its 80-day moving average. The ongoing consolidation could be a sign that GameStop is ready to bounce back as it heads into its next quarterly earnings call in a few weeks from now. On Wednesday, GameStop dropped 1.45% and closed the trading day at $144.79 which is about 15% lower than its 50-day moving average. The price levels of GameStop continue to be tied to the “diamond hands” strategy of Reddit investors, but as more of them give up hope in a large payday, the stock continues to slowly collapse.
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On Wednesday, only about 2.6 million shares changed hands between investors which is about 90% lower than the average daily trading volume of 21.3 million shares. The averages are definitely skewed following the Reddit short squeeze event, but investors seem to be taking the cue of new SEC Chair Gary Gensler who is looking into establishing stricter regulations on trading platforms. Social media investors on platforms like Reddit and Tik Tok have surged over the past year, and the SEC has growing concerns that these can result in coordinated market manipulations from both retail and institutional investors.
On a lighter note, GameStop’s Twitter account was reactivated on Tuesday, and many noted that the account was finally tweeting about the Reddit short squeeze from January. The account joked about going ‘to the moon’ and showed a trailer for the new Mass Effect game with a typo of MOASS, which is a common acronym for Mother of All Short Squeezes. Some on Twitter speculated that the reactivated account could be the start of GameStop’s move towards developing its eCommerce platform presence on social media.
