Shares of GameStop (GME) and AMC (AMC), the flagship ‘meme-stocks,’ were sliding as much as 10% and 12% respectively on Tuesday amid a broader market sell-off.
#AMCSqueeze was trending on Twitter as the ‘Apes,’ or long holders of the stock, vowed to keep holding and buy more at these levels.
“Wow actually salivating at these prices #AMC $AMC #AMCSqueeze #GMESQUEEZE,” wrote one Twitter user.
“Shorts haven’t covered! Not sure what’s so difficult about just buying and holding! Don’t let the FUD enter your mind and block it out,” wrote another.
A look at Fidelity’s orders by retail customers shows far more buying than selling orders for the video game retailer and the theater chain company.
Shares of AMC dipped below the $20 level, a price it hasn’t seen since May of 2021. GameStop shares were trading just above $105 each by mid-session. The stock was at levels it hasn’t seen since around late February of last year.
Some market watchers point to GameStop’s decline due to the threat stemming from Microsoft’s acquisition of Activision Blizzard and the subscriber base the tech giant’s ‘Game Pass’ portfolio will be acquiring.
GameStop and AMC have been “meme” favorites among retailer investors over the last year. AMC was the most searched ticker in all of 2021, ahead of Tesla (TSLA), and GME.
GameStop is undergoing a turnaround plan under Chairman Ryan Cohen, the co-founder of e-commerce platform Chewy (CHWY).
The stock closed 7% higher on January 7 after a Wall Street Journal report indicated the video game retailer is launching a marketplace for non-fungible tokens (NFTs)
The move had been hinted at previously, though no formal announcement has been made.
During the company’s last earnings call, CEO Matt Furlong said GameStop is exploring plans involving non-fungible tokens and crypto.
“We’ve also been exploring emerging opportunities in blockchain, NFTs and Web 3.0 gaming,” Furlong said during the call in December of 2021.
Ines is a markets reporter covering stocks from the floor of the New York Stock Exchange. Follow her on Twitter at @ines_ferre
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