Over the last few months, it’s been a painful ride for meme stocks. While the group has seen a strong move in the short term, many of these once-hot stocks have been under severe pressure.
You know the names. GameStop (NYSE:GME), AMC Entertainment (NYSE:AMC) and Bed Bath & Beyond (NASDAQ:BBBY) have been the main culprits.
At times though, meme stocks can be dominated by electric vehicle (EV) stocks or other companies. It all depends on what’s been trending in the news and if there is a high short interest.
Recently though, these three stocks are all under notable pressure on the day. That’s as the overall market rolls over and after this group had quite the rally lately.
GameStop, AMC and Bed Bath & Beyond have seen recent low-to-high rallies of 43.75%, 73.75% and 362%, respectively. On Wednesday though, these stocks are down anywhere from 3% to 5%.
Can Ryan Cohen Save the Meme Stocks?
Most people involved in meme stocks know who Ryan Cohen is. For those who don’t, he’s the co-founder and former CEO of Chewy (NYSE:CHWY) and he’s the current chairman of GameStop.
Further, Cohen’s fund RC Ventures had a large stake in Bed Bath & Beyond not that long ago before exiting its position. Now the retailer is struggling to stay afloat amid bankruptcy reports.
However, on Monday Cohen made headlines. He tweeted a photo that read, “Ryan Cohen Buys All Stocks.” Below that it stated, “GameStop Chair Decided on Monday to buy all the stocks.” While Cohen has taken a fresh stake in Alibaba (NYSE:BABA), others are hoping he creates renewed interest in meme stocks.
Specifically, some are hoping another position in Bed Bath & Beyond can continue to propel shares higher. There are even some looking for him to be the white knight by taking a board seat and staving off bankruptcy.
Ryan Cohen certainly has the attention of the meme stock crowd. However, do meme stocks have the market’s attention?
When these stocks went on massive short squeezes and huge rallies, we were in a bull market. Now in the thick of a bear market, it seems like a more dangerous bet to bank on meme stocks.
That said, depressed stock prices can make big moves, as evidenced by the last few weeks of trading in these names. Those who trade meme stocks will be looking closely to see if Cohen can act as a catalyst.
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On the date of publication, Bret Kenwell did not have (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.