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- Reddit day-traders are failing to hold the line, based on Tuesday’s trading activity of GameStop and AMC Entertainment.
- GameStop plunged 55% on Tuesday after falling 31% in Monday’s trading session.
- AMC Entertainment fell 43% on Tuesday after trading flat on Monday.
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The epic short-squeeze rallies fueled by Reddit’s WallStreetBets traders are beginning to unwind, based on Tuesday’s trading activity.
GameStop fell as much as 55% on Tuesday, adding on to a 31% decline seen on Monday. The stock is down 79% from its all-time-high of $483. GameStop surged more than 2,000% in January, leading to massive losses for some hedge funds like Melvin Capital, which was down 53% for the month.
The contagion in GameStop spread to another stock favored by the Reddit traders: AMC Entertainment. The movie-theater chain fell 43% on Tuesday and is down 63% from its recent high of $20.36.
The trading activity suggests Reddit users are failing to “hold the line,” the frequent battle-cry of the WallStreetBets trading forum. But as of Monday, one Reddit user is still holding the line: u/DeepFuckingValue.
The user, who has been long GameStop since 2019, posted a screenshot of his trading position on Monday after the close, signaling that he has yet to sell his outstanding positions in the video-game retailer.
Despite Monday’s decline, u/DeepFuckingValue, who also goes by the name RoaringKitty, was still up nearly 3,000% on his GameStop position, which is made up of both common stock and call options.
The top comment on RoaringKitty’s post on Monday was: “HOLDDDDD.”