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GigaCloud Technology
plummeted Monday, giving back early morning gains after retail traders shifted their view on the stock.
The Hong-Kong based business-to-business platform completed its initial public offering on the Nasdaq on Thursday, with the stock opening at $19.20, or 56.7% above the IPO price of $12.25. The following day, GigaCloud (ticker:
GCT
) garnered the attention of retail traders, whose trading activity caused the shares to close at $48.01 in their second session — up 206% from Thursday’s closing price.
Mentions of GigaCloud skyrocketed on online forums such as Reddit and Stocktwits following the company’s stock market debut. GigaCloud message volume rose by 14% on Friday, according to Stocktwits, while investor sentiment ticked up 0.08%.
The New York Stock Exchange halted the stock’s trading16 times on Friday due to its volatile trading activity, a trait that has characterized other stocks beloved by meme stock traders.
GigaCloud rose as much as 29% when the market opened on Monday, but has since done a complete turnaround, with the shares dropping 25% to $36.01. Other meme stocks also were struggling.
“Meme stocks, which were hit particularly hard during the market selloff this year, are making a comeback in recent weeks as the market rebounds,” said David Trainer, CEO of New Constructs, an investment research firm based in Nashville. “Just like the reckless meme stock frenzy of January 2021 fizzled out, we believe this latest meme stock spike will be short-lived.”
AMC
) was down 36.9%. The company debuted its “APE” special preferred share dividends, which were down 4.6% today. AMC will issue almost 517 million APE units — one for each share of outstanding common stock, the company said. In addition, fellow move theater chain
Cineworld
said it was considering a bankruptcy filing in the U.S.
GameStop
(
GME
) fell 4.7%.
BBBY
) declined 11.3% on Monday. The stock’s ratings were lowered to “CCC” on Monday at S&P Global Ratings, which said “macro conditions are worsening and prospects for home-goods sales continue to deteriorate.”
Last Friday, activist investor Ryan Cohen sold his entire stake in Bed Bath & Beyond for $178 million, sending the stock plummeting.
Write to Sabrina Escobar at sabrina.escobar@barrons.com
Read More:GigaCloud Stock Tumbles, Joining Meme Old-Timers AMC and GameStop in the Red
2022-08-22 17:54:00