The share of the physical videogames store company, GameStop, jumped more than 30% on Thursday, as a result of which its trading was stopped due to abnormal trading. A similar, although slightly smaller jump, was recorded by the share of the cinema chain company AMC, at + 20%.
GameStop and AMC were at the heart of the so-called “reddit investment frenzy” in early 2021, when micro-investors coordinated via online forums tossed their shares to hurt those who held short positions in them. The meteoric rallies of the two shares at that time led to large losses for many hedge funds and other short sellers, who had bet on the bankruptcy of both companies.
Since then, the frenzy has subsided and both stocks have fallen from their all-time highs, allowing short positions to be built on them again.
Source: Capital
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