GameStop leads meme stocks lower, on track for sharp weekly drop

(Reuters) – Shares of GameStop Corp slid further in early trade on Tuesday, continuing a slump that has seen the videogame retailer’s stock shed a third of its value so far this week.

The company’s shares were down 16.4% at $184, on track for their worst weekly performance since early February, with a drop of more than 30% since Friday’s close.

Other so-called meme stocks, popular with online retail traders, declined early in Tuesday’s session, with cinema operator AMC Entertainment Holdings Inc down 8.6%, while headphones maker Koss Corp fell 7.1%.

GameStop continues to retain a legion of devout followers after a social media frenzy in January triggered a massive rally in which its shares surged more than 1,600%, in a short squeeze that shook hedge funds such as Melvin Capital.