AMC spikes 310% as day traders ignite shorted stocks like GameStop, BlackBerry, and Bed Bath & Beyond
AMCEntertainment Holdings surged as much as 310% on Wednesday. Day tradersalso sent GameStopshares soaring, along with BlackBerryand Bed Bath & Beyond.
- Amateur investors are seeking quick profits from heavily shorted
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AMC Entertainment Holdings shares skyrocketed as much as 310% on Wednesday as day traders piled into heavily shorted stocks for a third consecutive day. The stock rally added up to $7 billion to the cinema chain's market capitalization.Frenzied buying also drove GameStop shares up as much as 157%, BlackBerry up 24%, and Bed Bath & Beyond up 46%.
Read more: 'We're very surprised we didn't underperform in the fourth quarter': Cathie Wood and her analysts break down their stock-selection process and the top 10 picks that contributed to the outperformance of ARK ETFs in Q4 2020Day traders also see the strategy as a way to stick it to Wall Street. They have targeted hedge funds such as Melvin Capital, which had negative positions in 17 US-listed stocks at the last count. Four of those - GameStop, Bed Bath & Beyond, Dillard's, and Ligand Pharmaceuticals - jumped at least 10% on Wednesday.
The GameStop frenzy is especially divisive. The billionaire investor Chamath Palihapitiya bought bullish options on the video game retailer's stock Tuesday at the urging of his Twitter followers, while Tesla CEO Elon Musk tweeted the word "GameStonk!!" with a link to the
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