GameStop ‘Breaks’ NYSE as Berkshire Hathaway Tanks
On Monday morning, the share price of Berkshire's Class A took a dip, reaching $185.10. This was the lowest it had been since 1979, as reported by FactSet.
The New York Stock Exchange said it’s “currently investigating” the “technical issue” that caused Berkshire Hathaway Inc. to tank. In addition, GameStop $GME and $AMC Entertainment stock trading has halted due to market volatility.
Also Read: Roaring Kitty’s New X Post Pushes GameStop Price by 300%
TradFi and DeFi market analysts have one question: Why does the stock market always “break” when GameStop, $GME, surges? Since the opening bell, the NYSE has halted trading on nearly 30 equities due to volatility, citing a “technical issue.”
Berkshire Hathaway and GameStop Has NYSE at a Standstill
On Monday morning, the share price of Berkshire’s Class A took a dip, reaching $185.10. This was the lowest it had been since 1979, as reported by FactSet. However, it is important to note that this is only a fraction of its actual share price of $635,000.
Several transactions ended with Class A shares of Warren Buffett’s Berkshire Hathaway Inc. trading at $185.10, a significant drop of 99.97% from Friday’s close of $627,400.00. Buffett owes a significant portion of his wealth to his ownership of approximately 15% of Berkshire, a company that boasts a diverse portfolio of subsidiaries such as GEICO and substantial investments in companies like Apple.
???? https://t.co/xjpRjHsp4Y— Elon Musk (@elonmusk) June 3, 2024
The cause of the glitch is currently under investigation, but according to a spokesperson for the NYSE, there is no indication of a cyber attack. Additional stocks that experienced trading halts were Chipotle, GameStop, and AMC. The latter two companies were involved in the recent meme stock frenzy.
Analysts Tie GameStop’s Surge to Market ‘Breaks’
GameStop shares previously surged after trader Keith Gill, also referred to as “Roaring Kitty” on social media, reportedly announced that he was increasing his stock bet. Jim Cramer now says, “Someone got picked off bad who bought Gamestop at $47.50.”
With the recent dip of $GME stock, the “GameStop Billionaire” status is a far cry for some. The current market fold has analysts wondering why stocks break every time $GME, surges.
JUST IN: Multiple NYSE stocks have now been halted on volatility due to a technical issue.
Berkshire Hathaway stock, $BRK.A, is currently down 99.97%.
Did Gamestop, $GME, just break the market? pic.twitter.com/aHhZcokoBU— The Kobeissi Letter (@KobeissiLetter) June 3, 2024
On January 28, 2021, Market brokers halted buy orders on $GME after a meme stock rally began. After that, on May 14, 2024, $GME and $AMC halted a total of 38 times in one day as the rally accelerated, leaving market observers establishing parallels.
Yesterday, June 2, 2024, Robinhood suspended overnight trading for $GME due to market volatility. Today, June 3, 2024, the NYSE saw multiple $100 billion+ stocks dip by over 99%, such as Berkshire Hathaway due to a “technical glitch.”
Normal Trading Resumes at NYSE
As of this writing, normal trading activities have resumed following the New York Stock Exchange’s announcement that a technical issue is affecting specific equities.
Also Read: Hackers Drain Millions from Binance Accounts Using Chrome Plugins
The NYSE announced shortly after 11 a.m. ET that the issue had impacted the primary electronic stock price publisher, but that the majority of equities had reopened or were in the process of reopening. The NYSE stated that “limit up, limit down bands,” which are intended to restrict volatility, were an issue.
A user on X, @greg16676935420 said, “If you bought $500 of Berkshire Hathaway 10 minutes ago, it would now be worth over $2 million. Let that sink in.” Another user added, “This is not a crypto rugpull, this is Berkshire Hathaway.”
Cryptopolitan Reporting By Florence Muchai
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