What is happening to GameStop (NYSE:GME) shares today? The brick-and-mortar retailer may have been the impetus for a Reddit revolution, but on Monday, GME stock is taking a hit. As investors move on to other opportunities, here are the top GameStop stories you should watch.
Last week, the market had a laser-like focus on GME shares, driving them to a high above $480. Today though, it seems that silver stocks and AMC Entertainment (NYSE:AMC), other plays from r/WallStreetBets, are soaking up the luck. In fact, the New York Stock Exchange had to briefly halt trading in GameStop after shares plunged to $213.
In no particular order, here are some of the top GME stock stories to catch up on as attention pivots:
- Robinhood continues to limit trading in GameStop. Although the trading platform has narrowed its list of restrictions from 50 equities to eight, customers cannot freely buy and sell GME. Investors can currently add just one new share.
- A roughly 20% plunge in GME shares has many investors worried about the broader market. However, Jim Cramer told CNBC that recent short squeezes do not represent “systemic risk.”
- According to data from S3 Partners, this plunge comes as short-sellers start to cover their positions. Short interest is down to 53% from 140% last month.
- Data from IHS Markit similarly suggests that shorts are covering, with interest down to 39% from 114% in mid-January.
- Although the GameStop hype may be cooling down, some experts question how the U.S. Securities and Exchange Commission will proceed with regulatory concerns.
- Brokers may have brought in as much as $500 million in GameStop trading revenue last week.
- We also learned that Melvin Capital lost more than 50% in January.
- Lastly, the pop culture power continues. Redditors took over a Times Square billboard and MGM just bought the GameStop movie rights.
What Comes Next for GME Stock?
It is not entirely clear where GameStop goes from here. Many investors continue to call for their peers to hold the line and refrain from selling GME stock. However, it is clear that not everyone is heeding that advice. If early short interest data is accurate, then there is reason to believe the powerful short squeeze is progressing into a new phase. As Bloomberg puts it, a short squeeze can only last as long as there is a sizeable short position.
While it is too early to tell where GME shares are headed in the long term, it is clear that silver stocks are big winners today. Following a similar trajectory, top names like the iShares Silver Trust (NYSEARCA:SLV) and First Majestic Silver (NYSE:AG) are soaring. You can read more about that story here.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.