The unraveling of the latest meme stock frenzy is accelerating as bad news for some of the most popular retail-trader favorites pile up and investors broadly dump riskier assets.
AMC Entertainment Holdings Inc. plunged 38 per cent in premarket trading ahead of its debut of a new class of shares and after peer Cineworld Group Plc confirmed it may go bankrupt. Bed Bath & Beyond Inc. tumbled 14 per cent, on pace to add to a 52 per cent two-day slide, after a report some suppliers were restricting or halting shipments altogether after the company fell behind on payments.
AMC Entertainment dropped 26 per cent last week while Bed Bath & Beyond crashed more than 60 per cent from an intraday high on Wednesday. Meme stock poster-child GameStop Corp. was caught in the selloff on Monday morning, dropping about per cent at 8:35 a.m. in New York. “There are big questions about how the retailer can turn things around when the inflationary environment is hurting their potential consumer,” said Danni Hewson, an analyst at AJ Bell.
Meanwhile, data from Vanda Research showed that individual investors have reduced their Bed Bath & Beyond stock purchases over the last three sessions after having snapped up a record US$73.2 million on Tuesday.
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