Today, stocks of memes are talked about. Currently, a number of the biggest winners of last year’s meme boom are enjoying renewed interest before GameStop’s (NYSE:EMG) impending stock split. Unfortunately, despite the gains in GME stocks, many are actually down on the day.
What’s going on with meme stocks today?
Well, some investors think meme stocks could see a resurgence resulting from the GameStop stock split. Yesterday, the video game retailer announced plans to seek shareholder approval for a Class A stock split. The split would see shares drop from 300 million to 1 billion. This would be the company’s first stock split in 15 years. So far today, GME stock is up more than 6% on the news, following a strong month for the company.
This March, GME has already enjoyed a number of strong trading days when investor Ryan Cohen bought 100,000 shares. Additionally, this quirky meme stock has taken a number of steps to capitalize on its increased funding. This includes the anticipated non-fungible token (NFT) market that GameStop has been teasing for some time.
Yet despite the company’s recent successes, a number of other meme stocks are in the red today.
Meme stocks slide as GME stock soars
Today’s favorite memes like AMC Entertainment (NYSE:CMA), Bed bath and beyond (NASDAQ:BBBY), new egg (NASDAQ:NEGG), Koss (NASDAQ:KOSS), Hydroft Mining (NASDAQ:HYMC) and others are suffering steep losses despite renewed expectations from GME.
Currently, KOSS, Newegg, Hycroft and AMC are each down between 4% and 7%. Meanwhile, BBBY stocks may squeal with only minor losses. Right now, the stock tends to drop less than 2%. That’s a far cry from how companies look before market today, when every name was up on the bullish wave of the GME stock split. Today’s drop comes just days after investing icon Bill Gross compared shares of memes like AMC and GameStop to “lottery tickets”.
Meme stocks are a mysterious bunch. It is often difficult to know exactly what causes them to rise or fall. Rest assured, however, that investors and analysts will be keeping a close eye on these Reddit favorites today.
As of the date of publication, Shrey Dua does not hold (either directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.