- Wednesday, October 16, 2024
GameStop Corp., the popular videogame retailer and original meme stock, experienced a 5% decrease in its shares on Tuesday, putting an end to a four-day winning streak. This decline also marks the biggest daily percentage drop since January 16, when the stock fell by 5.2%. In fact, over the past 17 trading days, GameStop's stock has been down for 11 of them.
During the previous month, GameStop shares rallied ahead of the company's fiscal third-quarter earnings report. However, they have now fallen by 33.8% in the last 52 weeks, in contrast to the S&P 500 index's gain of 21% during the same period.
Notably, short interest as a percentage of GameStop's public float of shares is currently at 23%, according to the latest exchange data.
Like other meme-stock favorites such as AMC Entertainment Holdings Inc., GameStop experienced significant success during the meme-stock buying frenzy in January 2021. Boosted by the WallStreetBets community on Reddit, GameStop's struggling stock skyrocketed by over 1,200% between January and March 2021, establishing a market cap exceeding $17 billion. However, since then, the shares have pulled back considerably, with GameStop's market cap currently standing at $4.55 billion.
In response to these market dynamics, GameStop underwent major leadership changes last year. In June, CEO Matthew Furlong was fired, and activist investor Ryan Cohen was elected as executive chair by the board. Later in September, Cohen assumed the role of CEO as part of his ongoing effort to revitalize the company.
Meanwhile, AMC Entertainment Holdings Inc. shares also experienced a 2.7% decline on Tuesday and have decreased by 91% in the past 52 weeks.
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