GME Stock News: GameStop Corp sinks as banks tighten restrictions on shorting meme stocks

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  • NYSE:GME fell by 3.80% on Friday as the short squeeze momentum dies down to close the week.
  • Major banks in the U.S. are tightening restrictions on naked options and short positions against meme stocks.
  • GameStop, AMC, and BlackBerry get pummelled as lower volume signals the rally may be over.

NYSE:GME has cooled off to finish the week, as the once lead meme stock watched AMC (NYSE:AMC) take over r/WallStreetBets forums. GameStop shares declined by 3.80% on Friday to close at $248.36, as the broader markets rallied heading into the weekend. GameStop is preparing for its annual shareholder’s meeting on June 9th, where Chairman Ryan Cohen should provide an update on how the ongoing digital transformation of the company is fairing. 

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A report came out on Friday revealing that some of the major U.S. banks have had enough of the ongoing short squeeze saga. Bank of America, Goldman Sachs, CitiGroup, and Jefferies Financial Group are reportedly going to no longer be accepting naked short options on GameStop, AMC, and Microvision. In addition, the banks could require institutional investors to provide higher collateral requirements if they wish to short a stock. It is estimated that hedge funds have now lost over $5 billion during the latest squeeze event. 

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How did other meme stocks do on Friday? AMC fell by 6.64% during the trading session and tumbled in after hours trading. BlackBerry (NYSE:BB) fell by 12.61%, but Microvision (NASDAQ:MVIS) surged by 12.38%. Which meme stock will be in the headlines next week remains to be seen, although declining trading volume definitely led to some of the stocks plunging off of their recent highs. History seems to be repeating itself from the first squeeze in January, as increased volatility eventually led to retail investors losing interest.