GME - GameStop and AMC shares fall as early week rally fades

2024-05-16 08:42:27 ET

Shares of GameStop Corp. (NYSE:GME) and AMC Entertainment Holdings Inc. (NYSE:AMC) experienced significant declines during Thursday’s premarket hours, shedding as much as 15%.

This downturn comes after a brief rally at the start of the week, which has now lost momentum.

Impact of Keith Gill’s return

The initial surge in GameStop and AMC stocks was triggered by the return of trader Keith Gill, known as “ Roaring Kitty ” on social media.

Gill’s reappearance reignited interest and buying activity among retail investors, leading to a rapid increase in share prices over two days.

However, the excitement has since waned, resulting in substantial premarket losses.

Current stock Performance

At 7:17 am ET, GameStop’s shares were down 14.84%, trading at $33.68. Similarly, AMC’s stock fell 14.96%, reaching $4.67 per share. These declines highlight the volatility and speculative nature of these stocks, which have been heavily influenced by social media-driven trading activity.

The recent volatility in GameStop and AMC stocks underscores the impact of retail investor sentiment and social media on market movements.

As the initial enthusiasm from Gill’s return subsides, it remains to be seen whether these stocks will stabilize or continue to experience significant fluctuations.

Investors should remain cautious and be aware of the risks associated with such highly volatile assets.

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