Consumer companies fell as the meme-stock rally hit a wall.

Shares of GameStop plunged by more than 20% at one stage during the session before recovering some of its losses. "Meme stock investing is not based on fundamentals, nor does is rely upon reason and logic," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management.

"Meme stock investing is a fad that is based upon momentum and a FOMO (fear of missing out) mentality ... Meme stock investing does not seem to be based upon fundamentals of earnings and projected growth of companies, nor even the perceived health of the holding at hand."

Royal Mail owner International Distribution Services said it received an improved $4.41 billion takeover proposal from Daniel Kretinsky's investment vehicle, EP Corporate Group, that it would be prepared to recommend to shareholders if a formal offer was made.

SharkNinja, best known for its blenders and vacuums, is taking a bigger brush to the beauty aisle.

McDonald's shares ticked up after reports the fast-food chain was offering $5 meals to inflation-weary customers, a monthlong promotion sponsored, in part, by Coca Cola.


Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

05-15-24 1742ET