Dhirendra Tripathi
Investing.com – AMC (NYSE:AMC) plunged 11% and GameStop (NYSE:GME) fell 5% early Thursday as investors debate whether the rally in meme stocks is finally over or not.
The two had fallen by 9.8% and 4.5% respectively in the previous session.
AMC hit a 52-week high of $72.62 on June 2 and has since come down to $45.07, the fall also fueled by traders disappointed over its constant fund raising. Two days ago, the multiplex operator had to call off one such sale of 25 million shares.
In less than a 30-day period leading up to first week of June, AMC raised $1.24 billion combined through three share sales.
GameStop closed at $190.66 Wednesday compared to its January 28 high of $483.
"The momentum is fading and the enthusiasm is fading," said Michael O’Rourke, chief market strategist at JonesTrading in Stamford, Connecticut told Reuters Wednesday. "They've been pushed well beyond the appropriate fundamental valuation levels so we're starting to see some air come out."
The noise on social media platforms like Reddit and Twitter seems to be ebbing but anxiety is growing as retail traders exhort each other to buy more of those stocks while accusing the big boys of shorting them.
One Twitter user alleged, “…They are tanking cryptos and liquidating out of other positions to bring us down. We are fighting the devil.”
“Both stocks are clearly being manipulated by the hedges without a doubt. I can just imagine all the IOUs that’s being push (sic) through the system in order to drive the prices of both stocks down,” another tweeted.