AMC and GameStop have seen a major drop in value.

Mahmoud Bennett Reporter

“Meme stock” heavy hitters GameStop, AMC drop in value, rise in popularity

Dec 14, 2021

Mahmoud Bennett Reporter

By Mahmoud Bennett (Reporter), Ben Burke (Producer), Emma Stoltzfus (Editor)

Months after becoming the biggest names in the “meme stock” movement, fueled in part by Reddit’s r/wallstreetbets, shares for video game retailer GameStop and theater chain AMC continued to drop in value Tuesday. As of late Tuesday morning, AMC was on track for a fourth straight day of losses, dropping 8% to a new 7-month low at $21.31. Meanwhile, GameStop fell 4.3% to $131. That’s the company’s lowest stock price since March.

In just the first two weeks of December, AMC has plummeted 45% in value. GameStop is only doing slightly better, down 35% so far this month.

The AMC drop can be explained by two factors. Last week, AMC CEO Adam Aron sold $9.65 million worth of company stock. In addition, there are worries the Omicron variant of COVID-19 could create a dent in the recovery of theater attendance.

GameStop is still reeling from disappointing third quarter financial numbers released last week. The value of the company dropped $1.39 per share in Q3. The company has also yet to release details on its highly anticipated and pricy new e-commerce strategy.

Despite the drop in value for GameStop and AMC, the meme stocks are rising in popularity among online searches. GameStop recently surpassed Tesla as the most-searched-for stock of the year, and #AMC500K trended on Twitter Tuesday morning. Many of the tweets in this hashtag indicate holders of AMC stock do not plan on selling despite the drop in value.

Tags: Society at Large

Mahmoud Bennett: THE TWO MEME STOCKS AT THE CENTER OF THE REDDIT-FUELED TRADING PHENOMENA ARE IN THE DUMPS.

AFTER MONDAY’S PUMMELING, GAMESTOP IS NOW DOWN A WHOPPING 35 PERCENT FOR THE MONTH AND AMC HAS TOPPLED 45 PERCENT.

FOR THE VIDEO GAME RETAILER THE CARNAGE CONTINUES FROM LAST WEEK AFTER THE COMPANY REPORTED A DISAPPOINTING WIDENING LOSS WITHOUT REVEALING *ANY DETAILS ON THEIR HIGHLY ANTICIPATED — AND PRICY — ECOMMERCE STRATEGY.

THE AMC STORY IS EVEN MORE DIRE. CEO ADAM ARON RECENTLY SOLD SHARES WORTH $9.65 MILLION AND THE NEW OMICRON VARIANT COULD KEEP CUSTOMERS FROM THEATERS.

BUT THE FAITHFUL REMAIN UNDETERRED. ONE USER SAYS HE BOUGHT AMC AT 5 BUCKS AND ISN’T GOING ANYWHERE. ANOTHER IS STANDING HIS GROUND AND SOME ARE EVEN BUYING THE DIP.

KEEP IN MIND, IF THESE GUYS BOUGHT THE AMC HYPE IN JANUARY AND HELD, THEY’D STILL BE UP A NOT-SO-SHABBY ONE THOUSAND PERCENT.\

THE MEME STOCKS MIGHT BE PLUMMETING BUT THEIR POPULARITY IN ONLINE SEARCHES IS SKYROCKETING. GAMESTOP HAS JUST SURPASSED *TESLA AS THE MOST SEARCHED-FOR STOCK OF THE YEAR AND AMC500K IS TRENDING ON TWITTER THIS MORNING.

I’M MAHMOUD BENNETT IN FOR SIMONE DEL ROSARIO. IT’S JUST BUSINESS.