Frederic J. Brown/AFP via Getty Images
- AMC stock has doubled in price since the beginning of the week amid renewed interest from Reddit users.
- The rally began early in the week after Wanda Group sold most of its remaining stake in the company.
- Short sellers lost $1.77 billion on GameStop, AMC, and Virgin Galactic so far this week, according to data from ORTEX.
- See more stories on Insider's business page.
Shares of AMC Entertainment have doubled in price this week as retail traders continue to pour into the stock.
AMC, the world's largest movie theater chain, is on a four-day hot streak, gaining as much as 102% week-to-date. As share prices rose, so did the number of Reddit comments about AMC, according to HypeEquity data.
On Wall Street Bets, the 10-million member thread best known for starting the GameStop saga earlier this year, Redditors rallied behind the stock, posting the usual rocketship and moon emojis, indicating their view that the stock has a long runway for gains.
One Redditor said, "Get em AMC gooooo." Another said "AMC to 26 by noon then to the moon," while others predicted shares would go as high as $30. At 1:20 p.m. ET, shares traded at $24.27.
The AMC rally began earlier this week after Redditors cheered newly available shares on the market, thanks to the company's once largest shareholder, private Chinese conglomerate Dalian Wanda Group, selling almost all of the remainder of its stake in the company.
Wanda Group bought AMC in 2012 for $2.6 billion and began selling down its stake in December after the company posted a $4.6 billion loss in 2020. Wanda Group's stake is now just .002%.
Following the news, one Redditor proclaimed, "We now hold the future of this company!"
Meme stocks, like AMC, GameStop, Virgin Galactic, and BlackBerry, have all seen strong gains this week amid positive sentiment about the companies from retail traders on Reddit.
And short sellers have lost a fortune. The latest data from ORTEX shows short sellers lost $1.77 billion on their positions in GameStop, AMC, and Virgin Galactic so far this week.
But short sellers haven't given up. The data show that short interest in the companies has actually gone up during the week. According to MarketBeat data, short interest in AMC is 21%. Short interest for GameStop, Virgin Galactic, and BlackBerry, is 21%, 24%, and 9%, respectively.
Source: Read Full Article