The AMC Entertainment Holdings (NYSE:AMC) is the latest target of retail investors from Reddit and this morning, the stock has soared by 47% to takes its gains for the week so far to 200%.
Investors from the Reddit community WallStreetBets have targeted the AMC stock in a big way in recent days and Bank of America has revealed that the stock is now more favored among the Reddit investors than even the previous favourite GameStop.
The targeted investment from these investors in stocks that have short interest usually leads to a short squeeze and eventually it leads to a significant rise in the price of the stock. Short sellers often wind down their positions following a rise in the share price and that sends the shares soaring further. As a matter of fact, one of the most popular posts in the Reddit community in recent days is titled ‘AMC rocket ship’. Investors could now consider keeping an eye on the stock and see if it might be worth riding the wave.
Writing for business and finance publishers has become his passion over the last decades after he completed a master’s degree in Financial Management. Sharing some opinions and forecasts to thousands of readers is a routine job for him but he never promises to invest in one stock.