- NYSE:GME plummets by 11.10% on Monday as the market continues to sell off tech and growth stocks.
- Senator Elizabeth Warren supports increased SEC regulations on retail trading apps like Robinhood.
- While Redditors may continue to hold GameStop stock, the daily trading volume has fallen off a cliff.
NYSE:GME may soon be on life support as the king of the meme stocks continues to fall back down to Earth following the Reddit short squeeze in January. On Monday, amidst another bleak trading day for the broader markets, GameStop plunged by 11.10% to close at $143.22. The stock continues to trade well below its 50-day moving average and is a far cry from the all-time high price of $483.00 that was set at the pinnacle of the short squeeze.
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The ongoing discussion from the new SEC Chair Gary Gensler and the House of Representatives, has focussed on the GameStop debacle and platforms like Robinhood that gamify trading for retail investors. Senator Elizbaeth Warren is just the latest heavyweight politician to chime in on the matter, as the Senator of Massachusetts supports increased SEC regulation. The regulations would specifically revolve around the amount of disclosure that sites like Robinhood provide to its customers, which includes the truth behind no-fee trading and how it actually benefits institutional investors behind the scenes. Robinhood has been seeking to IPO at some point in 2021.
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While some Redditors have been insistent on maintaining ‘diamond hands’ and holding their shares of GameStop, it seems that the rest of the market has moved on. Daily trading volume on Monday came in at only 4.7 million shares being traded which is well below the average daily trading volume of just under 22 million shares. While these numbers are inflated due to the high volume that took place in January, it should come as no surprise that the general public has moved on from the situation.
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