Why GameStop, AMC Entertainment, Genius Brands, Tilray And Bed Bath & Beyond Shares Are Falling Today

Shares of several companies in the broader retail and consumer discretionary sectors, including GameStop Corp. GME, AMC Entertainment Holdings Inc AMC, Genius Brands International Inc GNUS, Tilray Inc TLRY and Bed Bath & Beyond Inc. BBBY, are all trading lower as a rise in yields and worse-than-expected fourth-quarter earnings from Goldman Sachs weigh on the market.

Stocks such as AMC and GameStop surged in early 2021 amid short squeeze momentum and have continued to see retail-driven volatility.

The 10-year US Treasury yield reached a two-year high Tuesday, which has pressured valuations. The 10-year Treasury yield hit an intraday high of 1.85% Tuesday morning before dipping to around the 1.83% level. When interest rates rise, the value of future cash flows is reduced for growth stocks, which in turn lower the value of the stock.