Interactive Brokers founder: Don't short AMC, meme stocks — they can soar to 'unimaginable highs'

"It is extremely tempting to short these stocks, but unless you have huge liquid resources, please try to resist the temptation because these prices can go to unimaginable highs before they settle down to a reasonable valuation, and you may have to cover on the high point," the online brokerage pioneer said in an interview on CNBC'sShares of AMC soared more than 20% on Monday after rising 83% last week alone despite declines on Thursday and Friday.

"On the long term, stocks always approach their fundamental values, which in this case is much, much lower," Peterffy said, acknowledging that's why short-sellers see an opportunity in certain stocks such as AMC that have soared in price after becoming favored by Reddit traders. Shorting a stock is a bearish strategy in which an investor borrows shares and then promptly sell them, expecting the price to fall. When that happens, the short-seller buys back the stock at its lower level and returns the borrowed number of shares, profiting off the difference. If the opposite transpires, a short may try to limit their losses by buying back the stock at higher prices.

memestocks NakedShorts

“Unimaginable heights..” thank you. AMCSqueeze

CNBC SLIP ADMITS NAKED SHORTS EXIST IN AMC STOCK!!! They continue to support the Hedge funds and spread FUD AMC $AMC $GME TradesTrey matt_kohrs Joshuajammes CEOAdam business MarketWatch SquawkCNBC zerohedge S3Partners ihors3 Reuters

Diamond handed Apes 🦍 rule lmao 😆 AMCTheatres

You con’t to sound more unprofessional & uneducated with your questioning! You’re basically trying to get someone to say retail investors (Hard-working people globally) are pretty much dumb investors?!

Lol. Warn going against it, instead of talking about what actually this sort of crap brings to markets perception and warning against looking at these kinds of investments! Friggin clowns u all are lol. Oh, unless ure all in and pumping the stock-oh wait, that would be illegal!

Thomas Peterffy chuckled at the leading unsophisticated investor question. It's funny to see CNBC legit had a meeting beforehand talking about ways to try and get a 'gotcha' headline.

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Tesla, Liminal BioSciences, BlackBerry, Stitch Fix: What to Watch When the Stock Market Opens TodaySeveral “meme stocks” popular with retailer traders nudged higher premarket, including AMC, GameStop and BlackBerry You put Tesla in a list of meme stocks that people bought for fun? Is Apple a meme stock too? We know that you're getting paid by Ford,GM etc in order to trash them, but that's just ridiculous even for your corruption .Tell your donors to try to compete instead. It's pronounced 'stonks'
แหล่ง: WSJ - 🏆 98. / 63 อ่านเพิ่มเติม »

We put AMC, GameStop and other meme stocks’ numbers to the test — here’s which ones came out on topAMC, GameStop and Nokia are lumped together, but not all meme stocks are alike — whether you are a day-trader or a long-term investor. Up 1000% YTD... Sound good to me investinyou AMC500k amcshortsqueeze NakedShorts GMESqueeze I didn't invest in Google because I thought it was a 'fad.' I was wrong but not sorry. I got to sleep at night.
แหล่ง: MarketWatch - 🏆 3. / 97 อ่านเพิ่มเติม »

How to Mind Your Damn BusinessIn this excerpt from 'She Memes Well,' quintabrunson offers a guide to surviving the hell that is Twitter quintabrunson Literary legend quintabrunson Twitter isn't 'hell'. Geez.
แหล่ง: NYMag - 🏆 111. / 63 อ่านเพิ่มเติม »