AMC Entertainment and GameStop both fell on Monday, potentially dealing a shock to retail investors who poured a net $32.5 million and $4.2 million into the equities last week, respectively, according to Vanda Research.
AMC (AMC) shares plunged 15% to their lowest closure since May, while GameStop (GME) shares fell 14% to their lowest closure since March. Both have been under stress in the last month, plummeting by more than 30%. The Omicron coronavirus type has reignited fears that increased lockdowns may keep moviegoers away from theatres.
AMC’s CEO and CFO recently sold a combined $10.2 million in stock, increasing pressure.
GameStop announced wider losses but higher-than-expected third-quarter revenues earlier this month, as it attempts to switch to selling digital downloads while improving customer service. Management refused to provide financial targets and refused to answer analysts’ questions.
Earlier this year, the two stocks became favorites of a group of retail investors who taunted one other on Reddit, causing a short squeeze in multiple equities. Even now, AMC’s stock is ten times greater than what it was at the end of 2020, while GameStop’s stock is approximately seven times higher.
Investors on the social media platform Reddit stated they were cheering the recent dips in AMC, GameStop, and other meme stocks, and that they were buying more shares after the declines.