(CTN News) – The majority of meme stock traders entered the market yesterday, which resulted in a jump of 80 percent in the price of shares of AMC Entertainment (NYSE:AMC), which is a network of movie theaters. The buying rush continued throughout the night, which resulted in an increase in the value of AMC’s stock.
As of this morning, AMC’s share price was trading at $11.77. On the 13th of May, it made its debut at a price of $3.50, with a market valuation of up to $3 billion.
The increase was in line with the trend of other meme stocks for the year 2021. The meme stock game is back, according to X, as pointed out by Twitter user Keith Gill, also known as “Roaring Kitty,” which resulted in GameStop (NYSE:GME) experiencing an overnight increase in value twice as much.
Drink like it’s the year 2021!
On Reddit’s (NASDAQ:RDDT) r/Wall Street Bets, small traders have banded together to protest excessive stock shorting, which has resulted in the original meme stocks trading at higher prices. Based on the information provided by Fintel, approximately 19% of AMC’s float was sold short on May 14.
To add insult to injury, a significant number of financial institutions liquidated their overnight “put” positions, which are wagers that the stock price will fall.
Despite the fact that the AMC short interest is not considered to be excessive, the stocks that had the biggest short interest were also increasing in value. One of these was SunPower (NASDAQ:SPWR), which had 95% of its float held by short sellers.
It went up by more than 19% on May 13, and then by another 61% throughout the course of the night. Before the 14th of May, the market value of SunPower was greater than $800 million at that time.
The themes of retribution and violence were the focus of a number of short videos that Gill published throughout his career. In his conclusion, he provided a brief summary of his GameStop bull argument.
In the process of confronting their critics, this reporter was one of the smaller merchants competing with them.
The previous week, I penned an article that was critical of AMC. In my narrative, I made a mistake by increasing the amount of debt that AMC owed. As the price continues to rise above $10, traders are chanting “Hamilton,” which is another reason why I referred to it as a “penny serenade.”
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The mathematical aspects of the meme trading game have not changed. You will continue to make a profit as long as other traders continue to drive up the price of the stock. As soon as the shares are sold, they return to their initial values, leaving the holders with no other choices.
AMC Common Stock: What Comes Next?
It is not possible to rely on the indicators that bulls publish on the Wall Street Bets subreddit. You will be able to determine when it is appropriate to exit the transactions by looking at the trades themselves. It is recommended that you do not participate in the game if you are unable to closely follow them. I hope you have success!
As of the date on which this article was published, Dana Blankenhorn did not hold any positions in the securities that are being discussed in this article, either directly or indirectly.
This post contains the author’s opinions, which are stated in accordance with the InvestorPlace.com Publishing Guidelines.
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