WATERLOO (dpa-AFX) - GameStop Corp. (GME), AMC Entertainment Holdings, Inc.
(AMC), BlackBerry Limited (BB), and other companies favored by retail traders
saw a sharp decline in their shares on Wednesday morning.

GameStop shares, which had surged over 130% earlier in the week, dropped by 33%
to $32.44 during Wednesday morning trading. This decline followed a two-day
short squeeze that had propelled GameStop stock up by more than 180% in the
preceding two sessions.

The surge in these stocks coincided with Keith Gill, also known as 'Roaring
Kitty', reappearing on social media after a three-year absence. Gill, a
prominent figure among meme stock traders, had turned his $53,000 investment in
GameStop into a multi-million dollar stake, contributing to the increasing hype
surrounding the stock.

Nicholas Colas, co-founder of DataTrek Research, reflected in a client note that
the recent trading activity resembled the early 2021 events when a short squeeze
in GameStop was fueled, although the surge back then was significantly more
substantial, with GameStop stock spiking by 1,500% in January 2021 before
retracting most of those gains.

Experts had previously cast doubts on the sustainability of this year's meme
stock rally compared to the one in 2021. Dan Egan, head of behavioral finance at
investment advisor Betterment, noted in an email interview that the current
rally appears to be more condensed in time. Egan pointed out that in 2021, low
interest rates and the surplus cash from stimulus checks, combined with people
being confined at home due to the pandemic, had contributed to the prolonged
rally - circumstances not mirrored in 2024.

Currently, GME's stock is trading at $39.15, down 19.76% on the New York Stock
Exchange.



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