By Dhirendra Tripathi
Investing.com – Most meme stocks were down more than half-way through Wednesday’s session even as GameStop (NYSE:), the original favorite that started the mania, was up more than 4% ahead of its quarterly results.
The omnichannel retailer of video games is seen reporting a loss of 67 cents a share on revenue of $1.13 billion for the first quarter. It had reported net sales of $1.02 billion for the same quarter ended May 2 last year and a loss per share of $2.57.
GameStop will report earnings after trading hours.
Stocks in which the Wall Street biggies are heavily short become the target of Reddit groups like WallStreetBets, creating a short squeeze that forces the bears to quickly cover their positions.
What started with GameStop as a sort of fun exercise is now a serious business, with the list of such meme stocks only getting longer.
Workhorse Group (NASDAQ:), one of the new recruits, was up 4%.
AMC Entertainment (NYSE:), the first to replace GameStop as the Reddit favorite, was down 10%. The Wendy’s (NASDAQ:) was down more than 11%.
Clover Health (NASDAQ:), the latest hot-shot that has had a fabulous run up in the last two days, tumbled 13% on Wednesday.
Virgin Galactic (NYSE:) fell 3%. BlackBerry (NYSE:) was down short of 1%.
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