GameStop brings meme stocks to the downside, on track for a steep weekly decline

(Reuters) – Shares of GameStop Corp plummeted further early in trading on Tuesday, continuing a plunge that has seen shares in the game retailer lose a third of their value so far this week.

Shares in the company fell 16.4% to $ 184, on track for their worst weekly performance since early February, down more than 30% since closing on Friday.

Other so-called meme stocks, popular with online retailers, fell early in the session on Tuesday, with cinema operator AMC Entertainment Holdings Inc down 8.6%, while headphone maker Koss Corp fell. 7.1%.

GameStop continues to maintain a legion of devoted followers after a social media frenzy in January sparked a massive rally in which its shares rose more than 1,600%, in a brief squeeze that shook hedge funds like Melvin Capital.

Aaron Saldanha’s reportage in Bengaluru; Editing by Shounak Dasgupta