GameStop Stock and Crypto Rebounded From Heavy Losses Monday

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GameStop stock ended Monday with a nearly 7% loss, but that was off its lows.

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Meme stocks and cryptocurrencies have had a tough start to the new year. The pain continued on Monday, albeit with a bit of a rebound.

GameStop (ticker: GME) stock fell 6.8% to close at $131.15 on Monday. The high-profile meme stock is still up 558% from 52 weeks ago, but is down nearly 12% year to date. Shares traded Monday for as low as $120, which was GameStop stock’s lowest intraday level since March 25, 2021, when it hit $116.90, according to Dow Jones Market Data.

The rebound came as the broader market rallied in the final hours of the day. The Nasdaq Composite index which was down 2.72% at its low on Monday, rose to end with a slight gain to stage its largest intraday comeback since Feb. 28, 2020.

AMC Entertainment Holdings (AMC) stock fell 0.9% to close at $22.78. Shares traded as low as $21.25, or down 7.6%, before participating in the broader rebound. Shares of the movie-theater chain are up 935% from 52 weeks ago but down 16% year to date.

Shares of Bed Bath & Beyond (BBBY), another stock that exploded last year amid interest on Reddit forums also fell 5.7% to close at $13.01 on Monday. Meme cryptos such as Dogecoin and Shiba Inu fell 5.6% and 6.4%, respectively, according to CoinMarketCap.

While meme stock and crypto investors are used to daily price volatility, the recent skid for popular meme investments has followed the rising 10-year Treasury yield and expectations among Federal Reserve watchers about tightening monetary policy. In other words, some Wall Street traders may be betting that an end for easy-money policies could curb meme trading.

Write to Connor Smith at connor.smith@barrons.com