GameStop, AMC stocks take another beating, but close off lows

·Markets Reporter
·1 min read

GameStop (GME) and AMC (AMC) shares took another beating amid a broader market sell-off but finished off their session lows. The major averages pulled into green territory in the last hour of trading. The speculative stocks are still down now more than 50% over the last two months.

On Monday, shares of the movie theater chain were trading more than 10% lower at around $15, but closed at $16.64.

Meanwhile the video game retailer's stock was also down, well below the $100 level, but closed at $100.15.

Other speculative names with high short interest were also down. Blackberry (BB), Beyond Meat (BYND) and Bed Bath and Beyond, (BBBY) are more than 70% off from their all-time highs.

The so-called meme stock phenomenon started around this time last year, when retail traders on social media sites like Reddit's WallStreetBets bought up shares of GameStop.

Investing app Robinhood (HOOD), used by many retail traders, was dragged into the saga after briefly blocking the ability for users to buy GameStop shares which had gone parabolic. The trading app will be reporting its quarterly results this Thursday after the close. Robinhood's stock is down 80% from its August peak.

Shares of companies which did well during the pandemic have been hit hard. Those with no profit yet, trading on momentum and investor enthusiasm, have declined significantly.

"I do hope that investors will refocus on fundamental values," Thomas Peterffy, founder of Interactive Brokers, told Yahoo Finance Live last week.

"This meme stock idea — it's fun, but it's not sustainable," he continued.

Ines is a markets reporter covering stocks from the floor of the New York Stock Exchange. Follow her on Twitter at @ines_ferre

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