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GameStop’s Plunge Erases $11 Billion as Brokers Curb Trades (1)

Jan. 28, 2021, 9:47 PM

GameStop Corp. plummeted, snapping a dizzying six-day rally and wiping out nearly $11 billion in market value after brokerages choked off demand for the stock by curbing trading on the apps used by the company’s zealous fan base.

The stock plunged 44% Thursday after Robinhood Markets, Interactive Brokers Group Inc. and others took steps to curtail activity in several high-flying stocks, including GameStop and AMC Entertainment Holdings Inc. E*Trade Financial is preventing customers from purchasing shares of both firms, according to a person familiar with the matter.

GameStop shares jumped in extended trading after Robinhood said it plans to allow ...