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Why are AMC and GameStop not working?
Shares of the trio of AMC Entertainment, GameStop and Tonix Pharmaceuticals fell Tuesday morning after a long weekend.
At 11 a.m., the movie operator and video game retailer were down more than 8%, while the biotech was down only 2%. There is no news directly related to any stock, but GameStop is closely related to major market news, though it may surprise some that its shares are moving in the direction they are.
This morning, Microsoft announced the acquisition of Activision Blizzard for approximately $70,000,000 in cash, or about $95 per share. You thought the deal would boost GameStop's stock, as Microsoft said it would "accelerate the growth of Microsoft's gaming business across mobile devices, PCs, consoles and the cloud, and also provide the building blocks for the metaverse," a virtual world where they can interact. together; However, the market may react as Activision absorbs 25 million subscribers to Game Pass, Microsoft's suite of games.
Microsoft plans to launch future Activision games in the Game Pass world, which could attract potential GameStop customers in the future, especially as Game Pass eventually targets the market. school of used games.
Meme stock seems to be going up and down sympathetically these days, and given that AMC and GameStop are two of the biggest and best-known stocks, that could be the reason why the stock has been down. In fact, AMC has been on a downward trend since those joyous days last June, when its stock soared above $72 per share. Since then, it has lost three-quarters of its value and, despite slight gains here and there, the stock has continued to fall.
It's not unlike Tonix, which is down nearly 90% from its March peak. It was trading at just $2 per heel before it started to fall.
Duprey, R. (2022, January 18). Why AMC and GameStop Are Tumbling Today. The Motley Fool. Retrieved January 18, 2022, from https://www.fool.com/investing/2022/01/18/why-amc-and-gamestop-are-tumbling-today/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article