Shares of meme stocks AMC Entertainment Holdings (NYSE:AMC), GameStop (NYSE:GME), and Sundial Growers (NASDAQ:SNDL) were all heading lower in morning trading Wednesday, with the theater operator down 4%, the video game retailer off over 1%, and the marijuana company falling 3.5%.
The three companies have failed to maintain any sort of momentum from their earlier bull runs, and calls for retail investors to stand strong are not resonating as much as they did previously during the share-buying frenzy of January.
There are no catalysts present to serve as a rallying point. And with earnings looming next week for AMC and Sundial, the prospects for holding on during what are likely to be ugly results are not enticing.
All three stocks have weak business models, though AMC and GameStop arguably have the best chance at making a turnaround. Their operations were in a downturn before the pandemic, and then decimated by the lockdowns, though the video game retailer was able to make the most of its e-commerce ambitions.
Now as the economy tries to shake off the remnants of the coronavirus, each is looking to a reopened business environment for a chance to prove their growth stock bona fides. With the immediate outlook not all that favorable, however, shares are sure to be volatile, with the likelihood for lower lows remaining high.