Bank of America analyst throws in the towel on meme stocks, says fundamentals are not driving shares

Dado Ruvic | Reuters

The dramatic volatility in meme stocks favored by Reddit traders has confounded Wall Street for months, and Bank of America has decided to stop trying to make sense of some of them.

Analyst Curtis Nagle announced in a pair of client notes on Thursday night that Bank of America was terminating coverage of GameStop, citing a reallocation of resources, and moving to "no rating" on Bed Bath & Beyond.

The stocks were two of the main characters in the first speculative retail trading flare-up earlier this year, and their volatility has picked up again over the past two weeks. The firm previously had a buy rating on Bed, Bath & Beyond and an underperform rating on GameStop.