GME: GameStop Stock Unwinds Gains with 18% Decline After Huge Rally, AMC Joins Selloff

Did the game stop or what happened?

• GameStop stock GME wiped out a big chunk of its valuation after a powerful two-day rally had more than tripled the share price. Just as things were heating up and Reddit’s WallStreetBets board was getting flooded with “we’re so back” memes, the game stopped. At least for now. GameStop closed Wednesday’s session with an 18% loss at $39.55 a share.
• The sentiment shifted even before the opening bell. GameStop futures contracts were flaunting a gain of more than 30% ahead of the open. All that pop dwindled and turned into sour losses for no apparent reason. Other than the frothy gains from the past two days, which were largely based on one meme post by Roaring Kitty who broke his silence after three years.
• With that big drop factored in, shares of GameStop are still up a hefty 120%. Its closest meme stock cousin, AMC AMC, lost about the same yesterday. But its shares turned negative on the year after the movie theater chain announced plans of another stock offering — right after it finalized a $250 million share sale — to cash in on the rally. Shares of AMC are up double in the past month.