Meme Rally Fades as Bed Bath & Beyond, Koss Lose Luster

(Bloomberg) -- The latest meme stock frenzy started to unwind Thursday as retail-trader favorites like Bed Bath & Beyond Inc. and Koss Corp. tumbled after surging in the previous session.

Bed Bath & Beyond shares fell as much as 28%, the steepest selloff since January, after notching a record advance Wednesday. Koss slid as much as 31% after closing at the highest level since early February. Other so-called meme stocks including GameStop Corp. and PetMed Express Inc. declined Thursday.

This comes as other retail investor favorites announced plans to sell shares. AMC Entertainment Holdings Inc. shares sank the most in four months in the morning session after the movie theater operator said it was planning a stock offering, but then turned positive in the afternoon after the cinema chain announced the sale raised $587 million. Elsewhere, Express Inc. dropped as much as 26% after announcing a potential share sale of its own.

Read more: AMC Exploits Rally to Sell Stock, Whipsawing Shares Again (1)

Another sign of cracks in the meme stock rally is the whipsaw in BlackBerry Ltd. Shares in the company that has overtaken AMC in the number of WallStreetBets mentions dropped as much as 11%, after climbing 32%. They last traded up about 6%.

Still, some day trader favorites continued the rally higher. Workhorse Group Inc. soared as much as 59%, the most in more than two years, while Clover Health Investments Corp. jumped 20% and and Zomedica Corp. gained 25%.

Pot stocks were also among those that rallied Thursday. Tilray Inc. gained as much as 17% following an upgrade at Cantor Fitzgerald, and Sundial Growers Inc., which has been popular with retail traders, climbed 32%.

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