GameStop Stocks Slump as Reddit-Backed Surge Peters Out

After a Reddit-backed surge in the price of GameStop stock, culminating in the video game retailer’s share price topping $500 late last week, it appears the game has stopped. According to the Wall Street Journal, $GME stock was down nearly 60 percent at one point on Tuesday. Last week, as GameStop stock reached record highs—and reports emerged that Robinhood, the most commonly used stock-trading app, was running low on cash—the platform restricted all trading of $GME stock, along with other securities popular on the Reddit forum r/WallStreetBets, like AMC or Blackberry. Those restrictions have been gradually lifted, as Robinhood received an influx of billions from venture capital firms. The dip hasn’t scared users of r/WallStreetBets, where most of the top posts as of Tuesday are encouraging users to “hold.”