Why Meme Stocks Like AMC, Roblox, and GameStop Stumbled Today
Meme stocks sold off en masse today, despite the broad market's shallow gains. Rivian Automotive (NASDAQ: RIVN) and AMC Entertainment (NYSE: AMC) ended the day down 4.2% and 1%, respectively, according to S&P Global Market Intelligence, while shares of GameStop (NYSE: GME) and Roblox (NYSE: RBLX) fell 2.6% and 4.3%. The pullbacks defied the slightly bullish 0.40% pace set Monday by the S&P 500, reminding investors that highly storied stocks are unpredictable and can dish out sharp sell-offs when they stumble.
If you're seeking a specific headline to explain why recently rekindled meme stocks like GameStop and AMC are suddenly struggling again, don't bother. Most of the tickers of this ilk turned tail as interest in this sort of speculative trading again shifted without warning.
The sharp change in dynamic is reminiscent of actions seen in 2020 and 2021, when stuck-at-home consumers became first-time investors, turning to the stock market for entertainment. Many helped drive popular meme stocks higher, though once those rallies ran out of buyers -- and buyers ran out of reasons to continue buying -- most of those meme stocks suffered significant sudden sell-offs.
Source Fool.com
