GameStop Discloses SEC Probe Into Trading of Its And Stocks Of 'Other Companies;' AMC, Koss, BlackBerry Dip

Shares of multiple so-called stonks such as AMC Entertainment Holdings Inc. AMC, BlackBerry Limited BB and Koss Corp. KOSS fell in Wednesday’s trading session after video game retailer GameStop Corp. GME disclosed that the U.S. Securities and Exchange Commission is investigating the retail trading frenzy.

What Happened: GameStop revealed in a regulatory filing that on May 26, the SEC asked the company to cooperate with an investigation into the trading activity in the company’s securities as well as “the securities of other companies.”

“We are in the process of reviewing the request and producing the requested documents and intend to cooperate fully with the SEC Staff regarding this matter. This inquiry is not expected to adversely impact us,” the gaming retailer added.

GameStop’s shares fell in Wednesday’s extended trading session despite the company reporting better-than-expected earnings results for the first quarter as well as the appointment of a new chief executive officer and chief financial officer.

See Also: Clover Health, ContextLogic Become Top WallStreetBets Interests As AMC, GameStop Lag

Why It Matters: Shares of stonks, or stocks that are favored by retail investors, have surged in recent days as investors pile into the stocks and attempt a new short squeeze.

AMC Entertainment’s valuation shot past fellow stonk GameStop last week amid increasing interest from retail investors.

Price Action: Shares of GameStop rose almost 0.9% in Wednesday’s regular trading session to $302.56, but fell 5.2% in the after-hours session to $286.80. AMC Entertainment shares fell 10.4% in the regular trading session to $49.34 and further fell almost 4% in the after-hours session to $47.38.

BlackBerry shares declined more than 4% in the regular trading session to $15.16 and declined 1.1% in the after-hours session to $14.99. Koss shares fell more than 7% in the regular trading session to $26.32 and further declined 3.1% in the after-hours session to $25.50.

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Photo by Will Buckner on Wikimedia