Shares of videogame retailer and original meme stock GameStop Corp. registered their biggest daily percentage decline since early December.
stock ended Tuesday’s session down 5.2% for its sharpest decline since Dec. 5, 2023, when it fell 12.2%. The shares also extended their losing streak to three days, with GameStop’s stock now down in seven of the last eight trading days.
GameStop, like fellow meme-stock darlings such as AMC Entertainment Holdings Inc.
was a major beneficiary of the meme-stock buying frenzy in January 2021. Boosted by the r/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 $4.51 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.
Shares of AMC also continued their recent slide Tuesday, hitting a record intraday low and another record-low close.