Tuesday's Mangled Memes: GameStop, Senseonics

Since reaching a peak of around $324 a share late last Wednesday, GameStop Corp. (NYSE: GME) stock has dropped about 54% to trade Tuesday afternoon at around $211.00. The slide really got going after the company reported quarterly earnings and announced a secondary at-the-market offering of 5 million new shares of common stock.

GameStop also revealed that it had received a request from the U.S. Securities and Exchange Commission for documents and other information related to an investigation into the stock’s trading activity and trading in other meme stocks.

Senseonics Holdings Inc. (NYSE: SENS) makes glucose monitors for people with diabetes. As a meme stock, it doesn’t have the storied history of GameStop or AMC, but shares were trading higher by more than 1,000% in the past 12 months and more than 300% for the year to date.

Shares reached a five-month high of around $4.60 early Monday, capping off a two-day climb that looked like it might have legs. Alas, the stock has dropped by about 28% in less than two trading sessions to change hands at around $3.57 in the early afternoon on Tuesday. As is often the case with meme stocks, there has really been no news to support either the rise or fall in the share price.

With about two and a half hours left in Tuesday’s trading session, GameStop traded down about 8% for the day at $210.97, in a 52-week range of $3.77 to $483.00. The average daily trading volume is 11.2 million, and only about 4.4 million shares had traded thus far Tuesday. That final hour could be crazy.

Senseonics stock traded down about 9.6% to $3.58, in a 52-week range of $0.35 to $5.56. The stock trades an average of 28.7 million shares a day, and 43.2 million had already changed hands Tuesday.

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