GME: GameStop Stock Down 63% from Frothy Highs Last Month. Is Meme Trading Fading?

Roaring Kitty can only do so much — his PR stunts and screenshots took degen traders on a wild ride that ended where it started. Now, many are left holding the bag.

• GameStop stock GME is once again playing with investors’ money and not the other way around. The video game retailer has been a rollercoaster ride for the past couple months after the surprise appearance of Roaring Kitty — the meme stock enthusiast who spurred a retail trading revolution back in 2021. Now, he’s trying to instigate a similar wave of buying momentum. But it doesn’t stick.
• Shares of GameStop have erased a sizable chunk of their frothy valuation from mid-May when Mr. Kitty popped back on X (former Twitter) with a simple screenshot. After that episode, he moved to YouTube — after loading up on shares and options — where he tried to pump GameStop by sugar-coating the company’s position in the market. The selloff was brutal — after an initial jump, the stock crashed 40% during the YouTube livestream as the retail trader’s words rang hollow.
• And here we are now. The stock is lower by 63% since it peaked a month ago and has left many traders scrambling and trying to stay “diamond-handed” in a stomach-churning situation. Earlier this week, GameStop dropped 12% on Monday after CEO Ryan Cohen said he’s looking to cut costs and wind down the sprawling network of physical stores. The meme trading bonanza, while potentially lucrative, can also be hammeringly painful.