GME, AMC down as meme stocks stumble

GameStop (GME) and AMC (AMC) stocks slid on Monday closing down nearly 14% and 15%, respectively. The pressure on shares of both the video game retailer and cinema chain operator follow recent weekly declines for the flagship meme stocks favored by retail traders. 

AMC shares were trading as low as 16% during the afternoon session on Monday, adding to its loss on Friday of nearly 7%. GameStop’s stock was down 13% midday.

Meme stocks have been in a downward trend over the last month amid broader market volatility and a lower appetite for risky assets. 

Still, year-to-date, GameStop is up 645%, while AMC is up over 1000%, and retail investors are buying the dip. Orders by retail customers on Fidelity shows AMC and GME as two of the top 10 trades, with more Buy than Sell orders. 

Meme stocks under pressure on Monday

GameStop shares came under pressure, falling as much as 10% during one session after its quarterly results earlier this month. A lack of details over the company’s digital strategy may have been weighing on investors. 

Meanwhile in November, AMC announced that domestic and international ticket sales in October were stronger than in any month since the start of the pandemic in 2020. 

The company’s quarterly revenue on November 8 beat Wall Street estimates. During AMC’s earnings call, CEO Adam Aron said he would be selling some of his shares, citing estate planning. 

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