GameStop (GME) opened at $31.84 on January 2nd, reaching an early high of $32.05 before declining throughout the day to close at $30.66, a 2.17% drop from the previous close of $31.34. The stock experienced a low of $30.37, with trading volume at 73.66% of its average, indicating moderate activity.
The decline in GME's stock price was influenced by several factors discussed on Reddit. A new SEC rule requiring managers with substantial short positions to file Form SHO monthly, effective January 2nd, sparked skepticism among investors. Concerns were raised about the rule's effectiveness, with one user commenting, "But if they can hide their short interest using swaps, which is widely speculated with GME, then what good is this rule??" Additionally, rumors of potential federal investigations into naked shorting added to the uncertainty, as another user speculated, "There are rumors going around about the Feds wanting to arrest some managers for naked shorting."
Despite the negative sentiment, there was some positive buzz earlier in the day due to a social media post by Keith Gill, known as "Roaring Kitty," which initially led to a pre-market increase. However, the impact of this post was overshadowed by the broader concerns about regulatory changes and market manipulation.