Bed Bath & Beyond, GameStop, AMC surged Monday amid increased subreddit activity

Meme stocks are back! Bed Bath & Beyond, GameStop, AMC surged Monday amid increased activity on the Reddit page that fueled last year’s headline-grabbing surge

  • The value of heavily-shortened stocks soared last year as an army of small investors coordinated on online message boards like WallStreetBets.
  • “We think there is currently a short contraction underway in BBBY,” said Evan Niu, an analyst at Ortex, adding that 45 percent of the company’s free float was shorted.
  • The stock last rose to $11.33, a nearly three-month high, looking to extend its gains for a ninth straight session.
  • If the gains hold, Bed Bath & Beyond’s market value will double to more than $900 million since the rally began on July 27.

Shares of so-called ‘meme stocks’ such as Bed Bath & Beyond, GameStop and AMC rose on Monday as retail investors flocked to deep-short stocks.

The value of heavily-shortened stocks soared last year as an army of small investors coordinated on online message boards like WallStreetBets, boosting their share price and hurting bearish hedge funds.

Mentions of those three stocks increased noticeably on Wallstreetbets from Sunday to Monday and were some of the most popular at the open of trading on Monday.

“We think there is currently a short contraction underway in BBBY,” said Evan Niu, an analyst at Ortex, adding that 45 percent of the company’s free float was shorted.

The stock last rose to $11.33, a nearly three-month high, looking to extend its gains for a ninth straight session. If the gains hold, Bed Bath & Beyond’s market value will double to more than $900 million since the rally began on July 27.

GameStop and AMC Entertainment, which were at the center of a retail trading frenzy in early 2021, were up 8.8 percent and 13.8 percent, respectively, rising for at least the sixth straight session.

Bed Bath and Beyond and AMC are down single digits so far this year, while GameStop is still slightly up from last year.

Shares of so-called 'meme stocks' such as Bed Bath & Beyond, GameStop and AMC rose on Monday as retail investors flocked to deep-short stocks.

Shares of so-called ‘meme stocks’ such as Bed Bath & Beyond, GameStop and AMC rose on Monday as retail investors flocked to deep-short stocks.

Shares of GameStop and AMC were halted by volatility in the first few minutes of trading, Yahoo News reported.

A short jump in stock price can force bearish investors to buy back shares at a higher price to limit losses. The rush of demand from short sellers looking to get out of the bets pushes share prices higher still, resulting in a short squeeze.

Bed Bath & Beyond was the most widely purchased stock among retail brokerage Fidelity’s clients with more than three buy orders for every sell order. It was also the most traded stock on US exchanges with 54.5 million shares changing hands as of 10:18 a.m.

“These kinds of extremely large moves are rare, but they happen over and over again,” said Adam Sarhan, chief executive of 50 Park Investments.

“But more often than not these exaggerated moves are short-lived and stocks tend to go back down.”

The value of heavily-shortened stocks soared last year as an army of small investors coordinated on online message boards like WallStreetBets, boosting their share price and hurting bearish hedge funds.

The value of heavily-shortened stocks soared last year as an army of small investors coordinated on online message boards like WallStreetBets, boosting their share price and hurting bearish hedge funds.

GameStop and AMC Entertainment, which were at the center of a retail trading frenzy in early 2021, were up 8.8% and 13.8%, respectively, rising for at least the sixth straight session.

GameStop and AMC Entertainment, which were at the center of a retail trading frenzy in early 2021, were up 8.8% and 13.8%, respectively, rising for at least the sixth straight session.

In June, the company replaced CEO Mark Tritton as part of a management shakeup as it reported a 25 percent drop in first-quarter net sales.

Many amateur investors started buying stocks and digital currencies during the Covid pandemic and made money because the values ​​usually rose in the so-called bear market.

During the pandemic, record low interest rates intended to boost economies led investors to buy riskier assets like cryptocurrencies with higher rates of return.

As skyrocketing inflation drives up interest rates to safeguard savings, these assets are sold in favor of safer government bonds, which will provide better returns.

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