- NYSE:GME fell by 6.39% during Thursday’s trading session.
- GameStop Chairman Ryan Cohen sold his 10% stake in Bed Bath and Beyond.
- This meme stock rally could be coming to an abrupt conclusion.
NYSE:GME sank further on Thursday as the latest meme stock rally took an interesting turn of events after an ominous SEC filing. Shares of GME tumbled by 6.39% and closed the trading session at $37.93. The stock continued to fall during after hours trading and is down by a further 5.85% as of the time of this writing. Stocks did manage to post gains on Thursday as all three major indices closed the day higher. Overall, the Dow Jones added 18 basis points, the S&P 500 gained 0.23%, and the NASDAQ rose by 0.21% during the session.
Stay up to speed with hot stocks' news!
The major showstopper for the meme stock short squeeze was an SEC filing by RC Ventures that showed an intent to sell 9.4 million shares of BBBY. This is the venture capital firm owned by GameStop Chairman Ryan Cohen, who owns a more than 10% stake in the company. On Thursday afternoon, a further SEC filing confirmed that RC Ventures has indeed sold its stake in BBBY, causing the stock to fall by 19.63% during intraday trading and a further 35% in extended trading as of the time of this writing.
GameStop stock price
This could signal an abrupt end to the latest meme stock saga. Bed Bath and Beyond was the meme stock of the moment, and the sell off is affecting others like GameStop, AMC (NYSE:AMC), and FuboTV (NYSE:FUBO). While we have certainly seen short squeezes continue their rallies, it seems unlikely now that Cohen has departed the scene.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.