On January 27, 2021 in Chicago, Illinois, a sign hangs in front of an AMC theater. Shares of AMC Entertainment have more than quadrupled today as investors continue their continuation on heavily shorted stocks.
Scott Olson | Getty Images
In addition to GameStop, other popular short-press targets among Reddit retailers hit big on Tuesday.
Shares of AMC Entertainment, which rose nearly 300% last week due to a large short-term pressure, fell by 40% in morning trading. The iShares Silver Trust ETF, which is part of an effort to push the metal, has fallen by 6%.
In other strongly abbreviated names that rose last week, BlackBerry fell by 10%, Express fell by 31%, Koss by 41%, Naked Brand by 27% and Nokia by 5% after the opening clock. Genius Brands fell 3%.
Amid the retail investment in strongly abbreviated names, Reddit-powered retailers have pushed up GameStop, AMC Entertainment, Koss and others’ stocks and squeezed in hedge funds. This week, the shares are coming back to earth as Robinhood and other trading programs continue to restrict the purchase of shares and option contracts, and as the print trade loses momentum.
Shares of GameStop fell more than 50% on Tuesday.
At present, Robinhood allows customers to purchase only 20 shares of GameStop and 350 shares of AMC Entertainment. Customers can participate with 700 shares of Blackberry and 1,000 shares of Koss. However, if Robinhood customers own more than the share limit, they can not buy any shares.
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