Meme stocks fall amid broad market sell-off on Monday

• GameStop and AMC Entertainment Holdings Inc. fell sharply on Monday

• GameStop fell by 12% while AMC fell by nearly 17% during midday trading

Shares of GameStop and AMC Entertainment Holdings Inc. fell sharply on Monday, as investors are dropping off risky assets, amid a broad market sell-off.

GameStop, tumbled more than 12% during midday trading. Its month-to-date losses were brought down to nearly 29%. Shares of AMC fell 17%, as their monthly decline fell to over 32%, reaching their lowest level since June.

GameStop which led the meme stock mania at one time reported that its quarterly losses had widened from a year ago. Meanwhile, AMC’s shares fell by 7% on Friday after its CEO and CFO sold a combined $10.2 million of stock.

Also Read: GameStop shares tumble amid big quarterly loss, SEC probe

Despite that, Monday’s sell-off did not make a major difference to the two meme stocks. AMC’s shares are up by more than 970% on the year, and GameStop has rallied over 630% in 2021 under its belt.

The anxiety surrounding the omicron coronavirus variant has put a lot of pressure on assets and high-flying tech companies as investors speculate the Federal Reserve’s next moves.

Despite Monday’s losses, some individual investors continued to cheer the stocks in Reddit forums on Monday while retail traders on Fidelity’s platform rushed to buy shares of AMC Entertainment’s 18% dip and GameStop’s 14% drop, reported Bloomberg.

Also Read: AMC to accept bitcoin as payment method for movie tickets and concessions by end of 2021

Inputs from CNBC

Picture Credits: Glassdoor