GigaCloud Stock Tumbles, Joining Meme Old-Timers AMC and GameStop in the Red

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The time of dreams


GigaCloud Technology

fell on Monday, restoring early morning gains after retail traders changed their view on the stock.

The Hong Kong-based B2B platform completed its Nasdaq IPO on Thursday, with the stock opening at $19.20, 56.7% above the IPO price of $12.25. . The next day, GigaCloud (ticker:

GCT

) caught the eye of retail traders, whose trading activity caused the shares to close at $48.01 in their second session, up 206% from Thursday’s closing price.

Mentions of GigaCloud skyrocketed on online forums such as Reddit and Stocktwits following the company’s public debut. GigaCloud message volume rose 14% on Friday, according to Stocktwits, while investor sentiment rose 0.08%.

The New York Stock Exchange halted trading in stocks 16 times on Friday due to volatile trading activity, a trait that has characterized other stocks favored by even stock traders.

GigaCloud was up 29% at the market open on Monday, but has since staged a complete reversal, with shares falling 25% to $36.01. Other meme stocks were also struggling.

“Meme stocks, which have been particularly hard hit during the market sell-off this year, have been making a comeback in recent weeks as the market rebounds,” said David Trainer, CEO of New Constructs, an investment research firm based in London. Nashville. “Just as the reckless meme action frenzy of January 2021 died down, we believe this latest meme action spike will be short-lived.”

AMC Entertainment

(

CMA

) was down 36.9%. The company launched its special preferred stock “APE” dividends, which were down 4.6% today. AMC will issue nearly 517 million APE units — one for every common share outstanding, the company said. Additionally, other Move theater channels

cineworld

said he was considering filing for bankruptcy in the United States

GameStop

(

EMG

) fell 4.7%.

Bed bath and beyond

(

BBBY

) fell 11.3% on Monday. The stock’s ratings were downgraded to “CCC” on Monday by S&P Global Ratings, which said “macroeconomic conditions are deteriorating and the outlook for homeware sales continues to deteriorate.”

Last Friday, activist investor Ryan Cohen sold his entire stake in Bed Bath & Beyond for $178 million, sending the stock plummeting.

Write to Sabrina Escobar at [email protected]

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