GameStop Crash Wipes Out $5 Billion in Market Value
But One Market Expert Says Shares Could Rebound
Shares of GameStop, the company at the center of an online buying binge that captured the imagination of retail investors, plunged by 40% in after-hours trading on Thursday, wiping out more than $5 billion in market value.
The decline came after GameStop reported disappointing fourth-quarter earnings, with revenue falling to $1.8 billion, and a wider-than-expected loss. The company also announced that it would be closing 111 stores.
The news sent shockwaves through the market, as many investors had been betting on GameStop to continue its recent surge. The stock had risen more than 1,000% in the past month, fueled by a frenzy of buying on social media platforms like Reddit.
However, some market experts believe that the sell-off is overdone and that GameStop shares could still rebound. "This is a buying opportunity," said Wedbush Securities analyst Michael Pachter. "The company is still in a strong position, and the fundamentals are still there."
It remains to be seen whether GameStop shares will be able to recover from this latest setback. However, the company's recent experience has shown that anything is possible in the wild world of stock trading.
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