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Is the Meme Stock Rally Headed to the Stratosphere or Crashing Back to Earth?

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Stocks that are popular among individual investors skyrocketed earlier this week, but the razzle-dazzle of what seemed to be a promising meme stock rally fizzled out by Thursday.

Beloved meme stocks like GameStop Corp GME and AMC Entertainment Holdings Inc AMC were all the rage on trending tickers lists this week and were among the biggest daily movers.

What’s Going On: The recent rally appeared to be ignited by GameStop shares on Tuesday, shooting up 40% by Wednesday, only to plunge 10% by Thursday.

According to a report from The Business Times, call volume started to decrease Wednesday afternoon. 

“They’re panicking to get out,” said Joe Mazzola, director of trading and education at Charles Schwab. “It shows that a lot of that fire, that enthusiasm, started to get a little exhausted.”

Tupperware Brands Corp TUP saw a similar surge on Wednesday, climbing nearly 16%, while AMC Entertainment also leaped nearly 4% in solidarity with the other meme stocks. However, Tupperware plunged by 6.5% and AMC undid all gains, trading near its lowest point in a year by Thursday.

Carvana Co. CVNA showed a more steady increase throughout November and surged nearly 14% alongside other meme stocks on Wednesday. CVNA seems to be maintaining its progress, up by nearly 15% over the previous month.

What Happened To Retail’s Diamond Hands? According to a report from Bloomberg, individual investors sold nearly $16 billion worth of stocks in October, the highest in two years. Retail investors may be fretting over the rising market challenges and global conflicts, or perhaps they’re starting to believe that “stonks” won’t always go up.

GME Price Action: Based on data from Benzinga Pro, at market close on Thursday, shares of GameStop were down more than 10.46% to $14.55, AMC Entertainment fell 7.25% to $6.65, Tupperware was down 9.47% at $1.72 and Carvana tumbled 2.12% to $31.32.

Read Next: Why Marvell Technology Stock Gained After-Hours

Photo: Yuri from Pixabay

 

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