Business

GameStop leads meme stocks lower, on track for sharp weekly drop

Shares of GameStop Corp slid further in early trade on Tuesday, continuing a slump that has seen the videogame retailer's stock shed a third of its value so far this week.

FILE PHOTO: GameStop logo is seen near displayed stock graph in this illustration
FILE PHOTO: GameStop logo is seen near displayed stock graph in this illustration taken February 2, 2021. REUTERS/Dado Ruvic/Illustration
(Updated: )

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REUTERS: Shares of GameStop Corp slid further in early trade on Tuesday, continuing a slump that has seen the videogame retailer's stock shed a third of its value so far this week.

The company's shares were down 16.4per cent at US$184, on track for their worst weekly performance since early February, with a drop of more than 30per cent since Friday's close.

Other so-called meme stocks, popular with online retail traders, declined early in Tuesday's session, with cinema operator AMC Entertainment Holdings Inc down 8.6per cent, while headphones maker Koss Corp fell 7.1per cent.

GameStop continues to retain a legion of devout followers after a social media frenzy in January triggered a massive rally in which its shares surged more than 1,600per cent, in a short squeeze that shook hedge funds such as Melvin Capital.

(Reporting by Aaron Saldanha in Bengaluru; Editing by Shounak Dasgupta)

Source: Reuters