AMC Stocks The Next Target Of Reddit Traders
After GameStop's stock had a huge rise, Reddit users are turning their attention to the movie theater chain.
The stock market has been going through some interesting ups and downs recently, and it's all thanks to a group of Reddit users who are targeting certain stocks to push their value to incredible levels. GameStop was targeted first, and now, they've set their sights on AMC Theatres.
Stock prices for the movie theater chain cost $5 a share on January 26, but have since tripled in price as of Wednesday morning. This is what's called an organized short squeeze where a stock jumps up, and it forces traders to buy it after betting the price to fall. This move to buy more only adds to the stock's price, and the needle could be moving up for AMC very soon.
This is what happened with GameStop's stock. It closed on January 8 at $17.69, and a few weeks later, it opened on January 27 at $354.83. However, this short squeezing started taking place back on January 22. If this happens again with AMC stock, the graph below is just the start of something big.
Most of this discussion is coming from r/wallstreetbets on Reddit. There, users are rallying together indicating when to buy, when to sell, and what to focus on next. AMC is the current target of these stock traders, but as of this writing, the AMC needle hasn't moved much from last night.
AMC has had a rough go during the course of the pandemic. The company has been on the verge of bankruptcy as many theaters in the chain have been closed throughout the pandemic. However, the company managed to raise $917 million to weather the storm of the current pandemic.
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