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It has been suggested by some that the price of GameStop shares as quoted on the New York Stock Exchange bears no relationship whatsoever to what quaint old-timey analysts, investors and journalists refer to as “fundamentals.” That whatever bright future chairman and top shareholder Ryan Cohen has for the company cannot possibly justify a $12.5 billion valuation implied by its 200-day moving average, let alone the $20 billion it has occasionally enjoyed, for a money-hemorrhaging brick-and-mortar retailer of things available on the internet whose shares could have been had for one-thirtieth of their present level just a year-and-a-half ago and whose savior’s attention now appears diverted by other delusions of grandeur.

Two weeks ago, those people got to enjoy one of their rare but occasional moments of smug satisfaction when GME announced an actual loss during the holiday season—you know, the time when more videogames and videogame accessories are sold than at any other time during the year—and it’s stock consequently suffered, over and above the 60% drop it had already experienced since November.

“If they can’t make money in the holiday quarter, they’re doomed,” [Wedbush Securities analyst Michael Pachter] said.

To which Cohen replied, “seems cheap,” and ensured that the most recent holiday for GME bears would be as brief as they are rare.

Shares of GameStop Corp. rose 16% in after-hours trading after the videogame retailer’s chairman disclosed his firm bought 100,000 shares of the company’s stock on Tuesday…. GameStop’s stock closed Tuesday at $123.14, up 31% for the day.

This undoubtedly got the Cohen and GameStop fanboys on Reddit all lathered up, cheering the latest humiliation of the GME skeptics. But less than two weeks after this latest triumph, diamond hands are proving few and far between.

Both GameStop and AMC Entertainment, names that defined last year's meme-stock phenomenon, were halted in early Tuesday trading amid heighted volatility and larger-than-usual pre-market volumes.

GameStop dropped as much as 14% with over 17 million shares traded through afternoon trading, more than doubling its 30-day average full-day volume of 4.6 million…. The reason for the moves were not immediately clear, but both stocks are up big this month amid a broader comeback rally on Wall Street so some investors could be using that pop to take profits in the volatile shares….

There were some large block trades of GameStop in early trading on the NYSE. Outside of the open there were two trades of more than 20,000 shares apiece, according to FactSet data.

Meme stocks GameStop and AMC swing wildly Tuesday on heavy trading volume [CNBC]
GameStop Stock Halted On NYSE, Extends Slide With AMC As Trading Resumes [TheStreet]

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