• Send Us A Tip
  • Calling all Tech Writers
  • Advertise
Wednesday, June 25, 2025
  • Login
  • Register
TechStory
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
TechStory
No Result
View All Result
Home Business

Is it the end of meme stocks?

by Rohit Yadav
July 17, 2021 - Updated On July 18, 2021
in Business, Markets, News, Trending
Reading Time: 2 mins read
0
GameStop
TwitterWhatsappLinkedin

Last week, shares of firms that have been popular on Reddit boards have plummeted, with Carver Bancorp and AMC losing more than a fifth of their worth.

You might also like

Microsoft Plans Major Layoffs Across Xbox and Sales Teams as Part of Strategic Overhaul

Greek Court Hands Down Unprecedented Prison Sentence Over Defunct BitTorrent Site

Tesla’s Robotaxi Launch Marred by Traffic Violations, But Stock Surges Amid Influencer Praise

AMC and Gamestop

AMC’s stock lost over 2%, reversing positives from Thursday, when it gained nearly 8% in trade. Last week, the company has lost more than 20% of its value, making it one of the largest losers as a strong run-in meme companies began to fade. GameStop gained more than 1%, extending a premarket fall and bringing its week-to-date loss to almost 13%.

GameStop
Source: Ars Technica

Clover Health Investments Group

Clover Health Investments Corp., which soared almost 85 percent in a single day in June before losing 38 percent in July, is another huge loss. Its stock was trading for less than $8 a share in mid-May before skyrocketing to over $22, and shares were trading for less than $9 on Thursday.

Why are meme stocks falling?

The sharp decline in shares championed by individual investors on social media and in online forums demonstrates the market’s vulnerability for these small firms.

Searches for simple phrases like “investment” and “purchase stocks” have dropped to levels not seen in almost a year, according to Google Trends.

What they’re saying is this: Nicholas Colas, co-founder of DataTrek Research, believes this is a “very terrible sign” for meme stocks.

“To our perspective, the evidence here indicates that the spike in US retail investor enthusiasm in investment has come to an end,” writes Colas.

“To be relevant, any craze requires new devotees (i.e., not just the same audience), and the Google chart shows that these are becoming increasingly scarce.”

The combination of stay-at-home orders and the development of free trading applications has drawn many individuals into stocks and options for the first time this year, and retail trading became a force in markets.

Meme stocks this year

GameStop has risen more than 750 percent this year, while AMC has risen more than 1500 percent, thanks to coordinated trades on Reddit boards, with purchasers urging each other to invest in specific companies. At the start of the year, GameStop was trading for around $20 per share, while AMC was trading for under $2. In comparison, the S&P 500 index has increased by little over 16%.

AMC Entertainment
Source: Deadline

Stocks that have recently grabbed the interest of individual investors are also falling, demonstrating the market’s volatility. After surging 150 percent last week, Carver Bancorp Inc., a banking services firm, is down about 30% this week. The stock began trading in June at around $9 per share and has since more than quadrupled in price.

AMC cancels shareholder vote

AMC cancelled a plan last week for a shareholder vote to possibly issue 25 million extra shares in the wake of the current slump. Since January, it has issued approximately 100 million new shares and converted debt to equity.

Despite the rocky road, many individuals still trust in meme stocks. On the WallStreetBets forum on Wednesday, a Reddit member with the handle u/Gold-Educational posted “Not giving up on AMC, buying more.” The individual posted a snapshot of an AMC stock portfolio, which showed a 51 percent loss.

Is it the end?

Crazes seldom persist, even if there will always be strange causes for stocks to go drastically up or down over short periods of time.

Tags: AMCClover healthGamestopmeme stocksReddit
Tweet54SendShare15
Previous Post

Reliance Retail to acquire majority stake in Just Dial for ₹3,497 crore

Next Post

Oyo secured $660Mn in debt funding from Institutional Investors

Rohit Yadav

Hi! I'm Rohit, If you like reading about markets, technology and business, you've come to the right place. Catch me: [email protected]

Recommended For You

Microsoft Plans Major Layoffs Across Xbox and Sales Teams as Part of Strategic Overhaul

by Harikrishnan A
June 25, 2025
0
Microsoft’s Copilot+ Faces Scrutiny Over New Recall Feature

Microsoft is preparing to launch another wave of layoffs, with its Xbox gaming division expected to bear the brunt of the cuts. The move is part of a...

Read more

Greek Court Hands Down Unprecedented Prison Sentence Over Defunct BitTorrent Site

by Harikrishnan A
June 25, 2025
0
Decade-Old Torrent Site Lands Greek Man in Prison Amid Renewed Piracy Crackdown

In a ruling that has stunned both legal experts and digital rights advocates, a Greek court has sentenced a 59-year-old man from Piraeus to five years in prison...

Read more

Tesla’s Robotaxi Launch Marred by Traffic Violations, But Stock Surges Amid Influencer Praise

by Harikrishnan A
June 25, 2025
0
Tesla’s Robotaxi Launch Marred by Traffic Violations, But Stock Surges Amid Influencer Praise

Tesla's long-awaited Robotaxi rollout in Austin, Texas, turned heads this week—not just for its technical innovation but also for moments of troubling behavior on the road. Videos captured...

Read more
Next Post
Pile of American banknotes and retro light box with OYO logo

Oyo secured $660Mn in debt funding from Institutional Investors

Please login to join discussion

Techstory

Tech and Business News from around the world. Follow along for latest in the world of Tech, AI, Crypto, EVs, Business Personalities and more.
reach us at [email protected]

Advertise With Us

Reach out at - [email protected]

BROWSE BY TAG

#Crypto #howto 2024 acquisition AI amazon Apple bitcoin Business China cryptocurrency e-commerce electric vehicles Elon Musk Ethereum facebook flipkart funding Gaming Google India Instagram Investment ios iPhone IPO Market Markets Meta Microsoft News NFT samsung Social Media SpaceX startup startups tech technology Tesla TikTok trend trending twitter US

© 2024 Techstory.in

No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to

© 2024 Techstory.in

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?