Bed Bath & Beyond leads rout in meme stocks as mania fizzles - BNN Bloomberg

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The unraveling of the latest meme stock frenzy is accelerating as bad news for one of the most popular retail-trader favorites piles up and investors dump riskier assets.

Bed Bath & Beyond Inc. tumbled 16 per cent, marking a now three-day drop that’s erased 60 per cent of its market value, after a report some suppliers were restricting or halting shipments altogether after the company fell behind on payments. The pain extended to a group of 37 meme stocks tracked by Bloomberg which dropped 3.2 per cent, its fourth straight slide.

The selloff in meme stocks started last week after Bed Bath & Beyond’s top investor Ryan Cohen disclosed that he was selling his stake in the home goods retailer. The activist investor went on to sell his entire stake and pocketed US$68.1 million in profits, triggering the stock’s biggest intraday percentage decline ever on Friday.

Another meme-stock darling, AMC Entertainment Holdings Inc., was volatile as its preferred stock made its debut Monday under the ticker “APE.” The move splits the stock into two different units, so the value of an AMC Entertainment investment should be the combination of the two assets and not compared to what previous AMC Entertainment shares were worth, the company’s chief executive Adam Aron tweeted on Sunday.

Bed Bath & Beyond was among the worst performing retail trader favorites alongside stocks like Jaguar Health Inc., Cenntro Electric Group Ltd, and Koss Corp., which each fell at least 7 per cent. SmileDirectClub Inc. and Magic Empire Global were among other stocks to have recently inspired retail trading activity to fall. They each dropped roughly 15 per cent in Monday’s session.

 

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AMC, Bed Bath & Beyond lead rout in meme stocks as mania fizzles - BNN BloombergThe unraveling of the latest meme stock frenzy is accelerating as bad news for some of the most popular retail-trader favorites pile up and investors broadly dump riskier assets.
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