- NASDAQ:MNMD fell by 20.99% during Tuesday’s trading session.
- MindMed might have a bright future but there is risk involved.
- More pain for meme stocks as AMC, GME, and BBBY extend their slide.
NASDAQ:MNMD hit a brick wall on Tuesday as the psychedelic biotech company saw its stock price fall off a cliff coming out of the Labor Day long weekend. Shares of MNMD tumbled by 20.99% and closed the trading session at a price of $9.07. This would make its pre-split adjusted price at just $0.60 per share. Stocks extended their declines as all three major indices closed the day in the red. Stronger than expected ISM data from August weighed on investors ahead of the September FOMC meeting on interest rates. Overall, the Dow Jones fell by 173 basis points, the S&P 500 slipped by 0.41%, and the NASDAQ dropped by 0.74% during the session.
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The reverse stock split certainly leaves a bad taste in the mouths of investors. Just ask those that are invested in cannabis company Sundia (NASDAQ:SNDL). But MindMed does have some promising catalysts including five projects which are in Phase 2 of their clinical trials which means there are plenty of potential treatments coming down the pipeline. It also has a decent cash balance which can allow it to continue with these trials without making much in terms of revenues.
MNMD stock price
MindMed wasn’t the only meme stock declining on Tuesday. Shares of AMC (NYSE:AMC) were down by 7.77%, GameStop (NYSE:GME) by 8.11%, and Bed Bath and Beyond (NASDAQ:BBBY) a further 18.42%. It’s been an ugly couple of weeks for meme stocks following the BBBY short squeeze, and it doesn’t seem like there is any relief on the horizon for meme stock traders.
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