Today, meme stocks are the talk of the town. Currently, a number of last year’s biggest winners from the meme boom are seeing renewed interest ahead of GameStop’s (NYSE:GME) impending stock split. Unfortunately, though — despite GME stock’s gains — many are actually down on the day.
What’s going on with meme stocks today?
Well, some investors believe meme stocks could see a resurgence stemming from the GameStop stock split. Yesterday, the video game retailer announced plans to request shareholder approval for a stock split of Class A shares. The split would see shares increase 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 on investor Ryan Cohen’s purchase of 100,000 shares. What’s more, this original meme stock has made a number of moves to capitalize on its increased funding. This includes the anticipated non-fungible token (NFT) marketplace that GameStop has been teasing for some time.
Still, 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, meme favorites like AMC Entertainment (NYSE:AMC), Bed Bath & Beyond (NASDAQ:BBBY), Newegg (NASDAQ:NEGG), Koss (NASDAQ:KOSS), Hycroft Mining (NASDAQ:HYMC) and others are suffering brutal losses despite renewed GME expectations.
Currently, KOSS, Newegg, Hycroft and AMC are each down between 4% and 7%. Meanwhile, BBBY stock may squeak by with only minor losses. Right now, the stock is trending down by less than 2%. This is a far cry from how the companies looked pre-market today, when each name was up on the GME stock split bullish wave. Today’s drop comes just days after investing icon Bill Gross compared meme stocks like AMC and GameStop to “lottery tickets.”
Meme stocks are a mysterious bunch. It’s frequently unclear exactly what’s driving them up or down. Rest assured, though, investors and analysts alike will be keeping a close eye on these Reddit favorites today.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.