- GameStop commemorates its one-year anniversary since the stock took Wall Street on a rollercoaster ride.
- But a year after it went to the moon, meme stocks are getting crushed as markets enter a new era.
- Here's a look at how five viral stocks have done from their year-ago highs.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
If stock market phenomena had anniversaries, then this week is worth noting.
Reddit favorite GameStop commemorates its first anniversary since the stock took Wall Street institutions on a rollercoaster ride. On January 25, 2021, the stock traded as low as $61 only to rocket as high as $483 on January 29 before finishing the wild week up 204%. Trading in GameStop, as well as other popular stocks, was even restricted at one point.
At that time, retail-investor exuberance was highly contagious as many attempted to bring back the spirit of Occupy Wall Street by forcing some of America's most prominent hedge funds to close their bearish bets against the video game retailer.
Members of the Reddit group WallStreetBets fought for other left-for-dead stocks like AMC Entertainment and Blackberry. What became known as the meme stock frenzy grew out of multiple factors, including commission-free trading, government stimulus checks, and pandemic lockdown boredom.
But a year after GameStop went to the moon, meme stocks are getting crushed as markets enter a new era — one that sees major indices enter into a correction amid a hawkish Federal Reserve looking to tighten monetary policy.
Here's a look at how five of the top viral stocks have done over the last 12 months and year to date.
1. GameStop
From January 2021 peak: down 73%
YTD performance: down 32.5%
2. AMC Entertainment
From January 2021 peak: down 18%
YTD performance: down 42.5%
3. Blackberry
From January 2021 peak: down 71%
YTD performance: down 12.3%
4. Koss
From January 2021 peak: down 92%
YTD performance: down 24%
5. Nokia
From January 2021 peak: down 44%
YTD performance: down 11.7%
But for some, the mania isn't over. It is simply on pause.
"Last year's short squeeze was a significant moment in time that brought newer, younger retail investors into the fold. Now, those investors have some experience under their belt ... While investors' relationship with meme stocks has surely changed, we don't see them as a passing fad," said Carolyn Bao, VP at trading platform moomoo.
In fact, Insider senior investing reporter Marley Jay has recently spotted this red truck several times along Tillary Street in Downtown Brooklyn.
