GameStop shares slide as original meme stock’s struggles continue

by TexasDigitalMagazine.com

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Shares of videogame retailer and original meme stock GameStop Corp. are down 5% Tuesday, putting the stock on pace to snap a four-day winning streak. 

The shares are also on track to register their biggest daily percentage decline since Jan. 16, when they fell 5.2%. The company’s stock has been down 11 of the last 17 trading days.

GameStop
GME,
-5.36%

shares rallied last month ahead of the company’s fiscal third-quarter earnings report, but have now fallen 33.8% over the last 52 weeks, compared with the S&P 500 index’s 
SPX
 gain of 21% in that time.

Related: Original meme stock GameStop sees its biggest daily decline in over a month

Short interest as a percentage of GameStop’s public float of shares is 23%, according to the latest exchange data.

GameStop, like fellow meme-stock darlings such as AMC Entertainment Holdings Inc.
AMC,
-2.34%
,
 was a major beneficiary of the meme-stock buying frenzy in January 2021. Boosted by the WallStreetBets crowd on Reddit, the struggling videogame retailer’s stock soared more than 1,200% between January and March 2021, as the company’s market cap surpassed $17 billion. But shares have pulled back significantly since then, and GameStop’s market cap now stands at $4.55 billion.

The company saw major leadership changes last year. GameStop fired CEO Matthew Furlong in June and said that its board had elected activist investor Ryan Cohen as executive chair. Cohen was then named CEO in late September, the latest chapter in his attempt to breathe new life into the company.

Related: AMC’s CEO bemoans ‘painful’ stock slide amid ‘ludicrously anemic’ box office

AMC shares, meanwhile, fell 2.7% Tuesday and are down 91% in the last 52 weeks.

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