In the pre-market session on Friday, shares of GameStop Corp. (GME) plummeted 5.03% amid waning interest from retail investors in the meme stock frenzy.
The video game retailer's stock had surged earlier this week after the popular Reddit trader "Roaring Kitty" made a cryptic social media post, fueling speculation of another potential short squeeze. However, the hype around GameStop and other meme stocks appears to be fading, leading to profit-taking by investors who had piled into the trade.
GameStop's volatile price swings have been largely driven by retail traders coordinating on social media platforms like Reddit's WallStreetBets forum. As the meme stock craze loses momentum, GameStop's underlying fundamentals and business prospects may come back into focus.
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