GameStop sees crashing shares as Reddit rally eases
Gamestop, a videogame retailer, saw a decline in its shares on Monday. The company lost momentum together with other social media-hyped stocks that saw a wild increase earlier in February.
While the company recorded an upbeat performance during its early session, its shares still plunged 5.91% at $60. Shares of AMC Entertainment Holdings Inc and headphone maker Koss also declined, with both companies recording 9.5% and 4.9% losses respectively.
Considered as meme stocks, shares of Game Stop, AMC, and Koss greatly advanced over the past two weeks. This was mainly from amateur investors’ collective move of bidding up stocks that some U.S. funds had bet against.
The strong upswing has drawn the attention of regulators, but U.S. Treasury Secretary Janet Yellen believed that it was still early to conclude if new policies need to be implemented.