During early 2021, a band of retail traders joined forces on social media to bid up a slew of heavily shorted stocks, creating massive short squeezes that inflicted high pain on short sellers. These meme stocks experienced big pullbacks last year when risk sentiment shifted amid aggressive rate hikes. GameStop fell 50% in 2022, while AMC tumbled 75% and Bed Bath & Beyond, plunged 82%.
While the short interest in these names has come down from its peak after the jaw-dropping episode, it still remains much higher than average. About 48% of Bed Bath & Beyond's float shares are sold short, compared with an average of 5% short interest in a typical U.S. stock, according to S3 Partners. For GameStop, the short interest stands at 21%, down from more than 100% at the height of the meme stock mania in 2021, according to FactSet. AMC has also 21% of shares sold short.
A short squeeze happens when a stock jumps sharply higher, it forces short sellers to buy back shares in order to limit their losses. The short covering tends to fuel the stock's rally further.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
STOCK MARKET NEWS: Bed Bath & Beyond latest, JPMorgan CEO Jamie Dimon on economy, Powell speechJPMorgan CEO Jamie Dimon talks about health of the economy, stocks, oil slip and Bed Bath & Beyond announces more store closings. FOX Business is providing real-time updates on the markets, commodities and all the most active stocks on the move.
Fonte: FoxBusiness - 🏆 458. / 53 Consulte Mais informação »
Fonte: CNBC - 🏆 12. / 72 Consulte Mais informação »