I found out why! There was supposedly a factory fire at Wii U supplier plant and some Australian analyst jumped the gun and revised shipment amounts down by a million units. But then Nintendo made a statement indicating shipment allocations would NOT be affected. That's my guess, and explains the recovery in the price after Nintendo released the statement. Nothing to see here, keep buying folks, you got a free needless panic discount today!
Yesterday's Run-up was overextended, IMO. There was a point when we were around 23.84 where the October 24 calls were trading at 75c. I think some HF came in and bought a ton of stock and sold the calls against it. That happened at the same time as some margin calls (I speculate). We also hit major resistence - the 2012 opening price of 24.43. This is a volatile stock and if anyone is concerned with that, chances are that their position size is too large. I would expect a choppy price action ultimately in the upward direction... We had also gone up, what, 15% straight. Stocks don't move in a straight line. Gotta shake out the weak hands.
Forgot to add - this stock has a beta of 1.2ish. The price action of the last few days can be interpreted as VERY strong, since it happened with the market getting hit pretty hard. The flip side is that long/short funds might liquidate some of their short positions as their long positions decrease in value (either for margin or balancing purposes)... I still like the price action, and the fundamentals on this stock are very enticing.
My Best guess is profit taking. GME has had a pretty good run up. People are taking some profits and money off the table. I know, it's the sort of response you would get on CNBC, but that is what I'm thinking.Opportunity for shorts to cover and longs to buy more.