Meme Stocks Under the Microscope: GameStop’s Chairman and AMC Face Financial Headwinds

SEC Investigates GameStop Chairman’s Actions:

The Securities and Exchange Commission (SEC) is delving into the actions of GameStop (GME) Chairman Ryan Cohen. The focus? His sudden sale of a significant stake in Bed Bath & Beyond (BBBY). Following the news, GameStop stock observed a slight dip. The SEC has reached out to Cohen, seeking insight into his trades, communications with Bed Bath & Beyond’s board, and other related communications. Notably, Cohen’s takeover of GameStop in 2021 set off the meme stock frenzy. He also earned a hefty $60 million profit from his abrupt Bed Bath & Beyond share sale, which came shortly after his optimistic tweet about the company. Such a move led to Bed Bath & Beyond’s stock price soaring and then crashing dramatically.

 AMC’s Financial Rollercoaster:

Meme stock AMC Entertainment Holdings (AMC) took a nosedive following the announcement that it would sell 40 million shares to bolster liquidity and address debts. This drop continued the company’s tumultuous ride in the stock market, characterized by extreme highs and lows. After undergoing a reverse split to decrease outstanding shares, AMC’s stock plummeted. However, an earlier court decision, which blocked a stock conversion plan potentially diluting its value, had propelled the stock upwards. Despite these wild stock fluctuations, AMC reported a 16% increase in sales for its second quarter.

 GameStop’s Financial Report:

GameStop, another meme stock giant, showcased a 2% sales increment in its recent quarterly report. Though the company observed a minor per-share loss, it was an improvement from the previous year. The company has seen significant fluctuations in its stock price. A highlight was its performance in March, driven by its first profitable quarter in two years.

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Meme Stocks Under the Microscope: GameStop’s Chairman and AMC Face Financial Headwinds

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