GameStop is one of the few stocks that has been fueled by Reddit marketers investing based on the buzz of social media.
GameStop Corp., one of the popular “memes” companies whose shares have risen this year, said U.S. stock regulators are studying the trading of its 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 shares.
“We are in the process of reviewing the application and producing the requested documents and intend to cooperate fully with SEC staff on this matter,” the company said in a quarterly file. “This investigation is not expected to affect us negatively.”
Since February, stock regulators have been combing posts on social media and the bulletin board to find indications that fraud played a role in GameStop’s dizzying stock market changes, AMC Entertainment Holdings Inc. and other companies, people familiar with the matter said at the time.
GameStop is one of the few stocks that has been fueled by Reddit marketers investing based on the buzz of social media. Shares of the money loss chain have gained 1,500% this year, closing Wednesday at $ 302.56.
Shares fell as much as 13% in expanded trading after the company announced it could issue new shares, along with the hiring of two Amazon.com Inc. veterans. for leadership functions and fiscal results for the first quarter.