$50 Falls Below... The Falling Leaves of GameStop

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Yujin Cho] The stock price of GameStop, once a symbol of the "ant rebellion" in the U.S., has fallen below the $50 mark, hitting its lowest level.

On the 9th (local time) in the New York stock market, GameStop's stock price continued to decline in after-hours trading, dropping 18.33% from the previous close to $49. The closing price that day was $50.31, barely holding above the $50 level. This represents a shrinkage to one-tenth of the peak of $483 reached on January 28, in just 12 days. On the same day, the Nasdaq index closed at a record high of 14,007.70, up 20.06 points (0.14%).

The stock, which surged more than 1600% over ten days last month, has been unable to escape a continuous downward trend since February began. The stock briefly surged on the 6th but failed to find upward momentum as the hedge funds' short squeeze dissipated.

On the Reddit forum, the epicenter of the ant rebellion, a sentiment that "the ants' party is over" is forming. A member of Reddit's "WallStreetBets" discussion board described the stock price decline as "This really is like a party that's dying down."

U.S. media outlets have also reported that the GameStop battle between retail investors and hedge funds has come to an end. CNN reported, "GameStop's stock price has fallen to the $50 level," adding, "The ants' party is over." The Wall Street Journal (WSJ) reported, "The number of hedge funds engaging in GameStop short selling is sharply decreasing," and "Hedge funds are beginning to pull out of GameStop."

The U.S. government held a high-level meeting of financial regulators to discuss whether to implement additional regulations or policies regarding this incident, and a House hearing is scheduled for the 18th.

This content was produced with the assistance of AI translation services.