Why GameStop Corp. (GME) Went Down On Thursday?

We recently published a list of 10 Firms Mirror Wall Street Slump on Thursday. In this article, we are going to take a look at where GameStop Corp. (NYSE:GME) stands against other firms that mirrored Wall Street slump on Thursday.

Wall Street’s shares traded lower anew on Thursday, as investor sentiment continued to be dampened by President Donald Trump’s fresh tariffs on US imports.

The tech-heavy Nasdaq fell the heaviest, down 0.53 percent, followed by the Dow Jones at 0.37 percent, and the S&P 500 at 0.33 percent.

The market decline was mainly weighed down by the performance of car manufacturers after Trump announced a 25-percent tariff on all vehicles imported beginning April 2.

Ten companies mirrored the broader market decline. In this article, we listed Thursday’s 10 worst performers and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5 million in trading volume.

A gamer playing a game on one of the specialty retail company’s gaming platforms.

GameStop Corp. (NYSE:GME)

GameStop dropped its share prices by 22.11 percent on Thursday as investors resorted to profit-taking following Wednesday’s gains while repositioning portfolios amid the ongoing market uncertainties.

In recent news, GME announced plans to raise as much as $1.3 billion to buy Bitcoin. The company said it would attempt to raise the funds through convertible senior notes offering.

The planned purchase followed a photo of GME CEO Ryan Cohen a month ago with Strategy CEO Michael Saylor on social media X. While the photo did not mention any reason for the meetup, investors were quick to speculate a brewing cryptocurrency strategy between the two companies.

It can be learned that the gaming company had already ventured into cryptocurrency in 2022 with the establishment of a now-defunct cryptocurrency wallet that sent its share prices skyrocketing for days after the launch.

Just recently, reports also surged of GME closing several stores in the US, often with little to no warning. Since 2020 alone, GME has been shutting down more than 700 stores as the COVID-19 pandemic heavily weighed on its profits, further aggravated by a shift in consumption to online sales and video game makers resorting to digital-only access to games.

Overall, GME ranks 1st on our list of firms that mirrored Wall Street slump on Thursday. While we acknowledge the potential of GME as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as GME but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.