May 17, 2022

NasdaqNewsUpdates

Complete News World

GameStop rose more than 30% and stopped in single trading;  AMC shares pop too

GameStop rose more than 30% and stopped in single trading; AMC shares pop too

GameStop’s logo screen and trading information are displayed on the floor of the New York Stock Exchange (NYSE) on March 29, 2022.

Brendan McDermid | Reuters

Shares of two Mimi shares rose on Thursday, adding an unexpected wrinkle to a stock market that has been plummeting in choppy trading for more than a month.

Jim Stop It jumped over 30% and stopped for swings a few times. theater series stock AMC Entertainment More than 20% appeared.

GameStop and AMC turned heads early last year when a group of retail investors coordinated deals in online chat rooms to create massive short squeezes in these stocks widely hated by hedge funds and other players. The meteorite rallies caused great pain to many hedge funds and other short sellers involved in these speculative names.

Since then, stocks have retreated from their peak prices, and short sellers are starting to build their positions again. According to FactSet, AMC has a short interest of 19.5%, while GameStop has a short interest of 21.4%.

These big bets against the company can sometimes lead to dramatic one-day moves in the stock, as hedge funds move to close their short positions when the stock goes up, creating more buying pressure. This process is known as short pressing.

Even with Thursday’s big moves, shares remained well below their highs from early 2021. GameStop, which rose to $483 a share on a daily basis last January, was trading between $90 and $100 a share on Thursday.

AMC, which hit $72.62 on the day last June, was at about $12 a share on Thursday.

See also  Stock futures rise ahead of big week of retail earnings

Since the market capitalization of companies has fallen so much, it is easy for a few commercial stores, or even one large fund, to impose new short squeeze.

This is urgent news. . Please check back for updates

CNBC’s Yun Lee contributed to this report