Investors have seen this movie before: Short sellers borrow shares of a stock and sell it, with the hopes of buying it back at a lower price and pocketing the difference before returning the shares.
But if good news — or in this case, a coordinated push to make the stock pop — causes shares to skyrocket, short sellers have no choice but to quickly buy back the stock or face gigantic losses. It’s a phenomenon known as a short squeeze.
Fans on Reddit were thrilled by the recent moves.
AMC now has a market value of about $12 billion, even though the movie theater chain has been closed for most of the pandemic and is expected to lose money this year and next.
Analysts are forecasting that revenues will nearly double in 2021 and 2022, though, thanks to the reopening of many theaters around the country following last year’s shutdowns.
All news and articles are copyrighted to the respective authors and/or News Broadcasters. LC is an independent Online News Aggregator
Read more from original source here…