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“Easy come, easy go” seems to apply to “memes actions”. Sudden losses of over 40% of these stocks make the S&P 500 record look good.
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Investors cram into 15 highly traded select stocks discussed online, such as AMC Entertainment (AMC) and GameStop (GME), has lost almost half of its remarkable score this year. Those 15 stocks have skyrocketed in discussions on Reddit. But they’ve lost $ 25.6 billion in market value since AMC Entertainment peaked on June 2, according to Investor’s Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith. June 2 is now considered the day the memes’ fury peaked.
This drop in market value is astonishing as it wipes out nearly half of the $ 59.8 billion gains in these stocks this year through the June 2 peak. And this comes amid the erasures in other popular pieces. Grayscale Bitcoin Trust (GBTC), which tracks the price of the popular cryptocurrency is down 20% this year.
“The meme share craze is entering a new phase, with fewer new traders, which will make these names even more volatile,” said Nicholas Colas, co-founder of DataTrek Research. “Every craze needs new followers (not just the same crowd) to stay relevant, and… these are increasingly rare.”
AMC Is The Child Of The Meme Stocks Of Pain Poster
Timing is everything, especially with memes stocks. Investors who have crammed into shares of the struggling movie chain are now fighting themselves.
AMC Entertainment shares are down more than 42% from the June 2 high. This crash wiped out nearly $ 13 billion in earnings, more than any other major store of memes. This in itself is remarkable, because $ 13 billion is more than what 62 entire S&P 500 companies are worth individually. It also removes nearly half of the $ 30.9 billion gain that AMC investors are worth. Entertainment have benefited from the start of the year all the way to the top.
Don’t feel too bad for the same stock investors, at least those who got in early. AMC Entertainment shares are still worth $ 18 billion more than they were at the start of the year. Stocks are still up nearly 1,600% this year. If you had put $ 10,000 on the stock coming in the year, you would still have $ 169,811 now. That’s a higher return than any stock in the S&P 500, and even the S&P 1500 at large. Should You Buy AMC Entertainment Stock Now?
GameStop started disappearing early
GameStop, a struggling mall-based video game retailer, sparked all the meme stock mania. But he also cooled him down quickly.
Stocks have lost more than half of their value from their late January high. Investors are now down $ 7.7 billion from the June 2 market nadir. It’s the second-biggest wealth implosion among major memes stocks. And that wipes out over 40% of the stock’s gain from the start of the year through June 2. Should you buy the GameStop action now?
But winning, getting in early (or getting out) is your salvation.
Even after several crashes this year, GameStop is still up over 785% this year. This put $ 11.2 billion in the pockets of investors during that time. And it’s not just the famous stocks of memes that are affected. Bed bath and beyond (BBBY) found herself drawn into the buying activity. And now that stock is down 37.4% from its June 2 high. That decline wiped out $ 1.8 billion in market value, leaving it only 56%, or $ 665 million, for the year.
Much of the manic interest in speculative stocks is now gone, returning to pre-pandemic levels, Colas says. Seems like now is the time for fundamentals to matter, even for memes stocks. And it looks like it’s not that exciting.
Meme stock implosion
Most major craters of Reddit shares from AMC Entertainment’s June 2 summit
| Investment | symbol | Stock YTD% Ch. | % ch. stock from June 2 | Market value ch. as of June 2 ($ millions) | Sector |
|---|---|---|---|---|---|
| AMC Entertainment | (AMC) | 1,598.1% | -42.4% | – $ 12,906.5 | Communication services |
| GameStop | (GME) | 785.5% | -40.9% | – $ 7,733.5 | Consumer discretionary |
| Bed bath and beyond | (BBBY) | 55.9% | -37.4% | – $ -1,795.0 | Consumer discretionary |
| iShares Silver Trust | (SLV) | -0.8% | -6.8% | – $ 1,653.5 | Finance |
| National drink | (SPARKLING) | 4.1% | -16.3% | – $ 803.0 | Basic consumer products |
| PetMed Express | (PETS) | -8.8% | -36.5% | – $ 338.0 | Consumer discretionary |
| Koss | (KOSS) | 460.2% | -52.7% | – $ 182.7 | Consumer discretionary |
| Tangier factory outlet centers | (SKT) | 86.2% | -6.7% | – $ 134.1 | Immovable |
| Macerich | (MAC) | 65.0% | -3.0% | – $ 111.5 | Immovable |
| Express | (EXPR) | 426.4% | -26.4% | – $ 113.8 | Consumer discretionary |
| AMC Networks | (AMCX) | 55.3% | 0.4% | $ 9.3 | Communication services |
| Global acceptance | (WRLD) | 62.8% | 2.3% | $ 21.5 | Finance |
| Pharmaceutical Ligand | (LGN) | 16.5% | 2.2% | $ 41.1 | Health care |
| Workaholic group | (WKHS) | -41.0% | 1.4% | $ 19.7 | Consumer discretionary |
| Tootsie Roll Industries | (TR) | 17.7% | 0.9% | $ 66.1 | Basic consumer products |
| Total | -25,613.8 $ |
Sources: IBD, S&P Global Market Intelligence
Follow Matt Krantz on Twitter @mattkrantz
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