Reddit Users Send Shares of AMC Exploding as Much as 47% on Thursday

AMC Entertainment shares were up as much as 47% Thursday and ended the session 35.6% higher at $26.52.

Bank of America has said that AMC has now overtaken GameStop to become the most-loved stock in the infamous WallStreetBets Reddit forum.

AMC’s big move on Thursday could be contributed to a so-called short covering. The company has about 20% of its float shares sold short, compared with an average of 5% short interest in a typical U.S. stock, according to data from S3 Partners.

GameStop had made Wall Street history in January with its 400% short squeeze in a single week.
One of the trending posts on the WallStreetBets chatroom Thursday had read, “AMC rocket ship,” while another said, “invested all my savings into AMC!!! Wish me luck guys.”

“AMC short sellers have been covering some of their exposure lately reversing their short selling trend earlier in the month,” said Ihor Dusaniwsky of S3 Partners.

Short sellers betting against AMC have incurred a $1.3 billion loss this week alone, according to data from S3 Partners.

AMC’s share price has seen a jump of 1,200% since the start of the year.

For the first quarter, AMC posted $148.3 million in revenue, down 84.2% from the same period a year ago. Its net loss shrank to $567.2 million, or $1.42 per share in the quarter, from a loss of $2.18 billion, or $20.88 per share, a year earlier.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.