Favorite stock meme GameStop says it is subject to SEC probe | Financial Markets News


GameStop is one of a handful of stocks that have been fueled by Reddit traders who invest based on social media.

GameStop Corp., one of the famous “meme” companies whose shares have increased this year, said U.S. securities regulators are looking to trade their shares.

The video game retailer said Wednesday that Securities and Exchange Commission staff contacted the company on May 26, for the voluntary production of documents and information related to the stock.

“We are in the process of reviewing the application and producing the requested documents and we intend to cooperate fully with SEC staff regarding this matter,” the company said in a quarterly presentation. “This investigation is not expected to have a negative impact on us.”

Since February, security regulators have been combing social media and message boards for signs that fraud has played a role in the dizzying stock swings for GameStop, AMC Entertainment Holdings Inc. and other companies, people familiar with the matter said at the time.

GameStop is one of a handful of stocks that have been fueled by Reddit traders who invest based on social media buzz. The share of the chain that lost money gained 1,500% this year, closing Wednesday at $ 302.56.

The stock fell to 13% in extended trading after the company announced it could issue new shares, along with the hiring of two Amazon.com Inc. veterans. for key leadership roles and first quarter fiscal results.





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