Shares of movie theater chain AMC Entertainment and brick-and-mortar retailer GameStop, two of the top meme stocks embroiled in a late-January trading frenzy, have posted a stunning run this month, surging nearly 50% and 35%, respectively, as Reddit traders continue to plow into the highly shorted stocks despite still-bearish forecasts from analysts—one of several signs that risky market activity is still running full force.
Signaling that frenzied trading once again fueled a short squeeze, AMC short interest rose to a record high in mid-April before falling by month's end as trading volume and prices surged well into this month, likely forcing the institutional investors betting on a price decline to cut their losses by buying back shares at higher prices.
Despite the celebratory retail traders, analysts are still overwhelmingly bearish on shares: Citi's Jason Bazinet reiterated a sell rating for AMC Thursday and issued a price target of just $3.70, saying the company's high debt load adds to the risk of its uncertain recovery from the pandemic, as more studios forgo theater releases in favor of at-home streaming.
A Call to Protect the Nature! Thread to watch/read: