GameStop tumbles, other ‘meme stocks’ falter after big runups

Shares of GameStop Corp fell more than 17% on Thursday and other so-called meme stocks also declined, setting the stage for another roller-coaster session for stocks favored by retail investors on social media platforms.

GameStop shares recently traded at around $249, after the video game retailer on Wednesday reported stronger-than-expected earnings, named the former head of Amazon.com Inc’s Australian business as its chief executive officer and said it may sell new shares. Wedbush Securities on Thursday raised its price target on the company to $50, from $39.

Soaring rallies in the shares of GameStop and AMC Entertainment Holdings over the past month have helped reinvigorate the meme stock frenzy that began earlier this year and fueled big moves in a fresh crop of names popular with investors on forums such as Reddit’s WallStreetBets.