Meme Stocks Suffer Worst Day Since June as Risk-Off Rages
(Bloomberg) -- Meme stocks including GameStop Corp. and Bed Bath & Beyond Inc. are tumbling Tuesday as investors bail out of riskier assets in favor of value-oriented companies.
A group of 37 retail-trader favorites tracked by Bloomberg fell 5.5% Tuesday, the worst drop for the group since mid-June. The newfound caution was also reflected in the tech-heavy Nasdaq 100, which slid 0.5% in the face of rising interest rates, and with Wall Street generally shying away from unprofitable companies.
GameStop and Opendoor Technologies Inc. were the worst performers as individual investors opted to flip thinly traded biotech stocks, rather than pile back into meme stocks that saw meteoric gains turn to pain earlier this year. The slump comes just days before millions of Americans will gather with family and friends to celebrate Thanksgiving with turkey -- and perhaps swap investment ideas.
To be fair, many of the meme stocks remain some of this year’s biggest winners, with eye-popping rallies at the best-known cult favorites. For investors who got in before the start of the year, AMC Entertainment Holdings Inc. has surged 1,747% while GameStop Corp. jumped over 1,000%.
Here are some favorites among retail traders that are seeing notable losses in Tuesday’s trading
- Vinco Ventures Inc. is down 20%
- Aurora Innovation Inc. falls 19%
- Progenity Inc. crashes 10%
- GameStop drops 14%
- Opendoor Technologies falls 8.9%
- AMC Entertainment drops 5%
- Bed Bath & Beyond slips 7.3%
- Hims & Hers Health Inc. falls 6.3%
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