GameStop Shares Experience Largest Decline

Shares of GameStop Corp. ended Monday's session with an 8.6% decrease, marking the stock's biggest daily percentage decline in the past two months. According to Dow Jones Market Data, this decline is the largest since December 5, 2023, when the stock fell 12.2%.

GameStop, known for being an original meme stock, has been witnessing a slide in its share value recently. The company's market capitalization now stands at $4.5 billion, which is significantly lower than its peak of $17 billion during the meme-stock craze in 2021.

Despite experiencing a rally in December in anticipation of the company's fiscal third-quarter earnings report, GameStop shares have fallen by 43.6% over the past 52 weeks. In comparison, the S&P 500 index has gained 20.4% during the same period. The short interest in GameStop's public shares is currently at 22.6%, based on the latest exchange data.

GameStop went through significant leadership changes last year. CEO Matthew Furlong was fired in June, and activist investor Ryan Cohen was elected as the executive chair of the board. In late September, Cohen took on the additional role of CEO, as part of his efforts to revitalize the company.

Shares of another original meme stock, AMC Entertainment Holdings Inc., also ended Monday's session with a decline of 8.5%, reaching an all-time closing low of $3.67.

The Future of Meme Stocks in 2024

As we look ahead to 2024, it is important to consider what we can expect from meme stocks.

GameStop Shares Continue to Struggle as an Original Meme Stock

The struggles for GameStop, one of the pioneering meme stocks, continue as its share value keeps declining.

Don't forget to check out the financial news podcast "On Watch" by Jeremy Owens, where he analyzes the driving forces behind the markets and provides insights to help you make more informed financial decisions.