Shares of “meme stocks” AMC Entertainment and BlackBerry Ltd rose in early business on Thursday (June 3rd) and continued a glowing rally fueled by small investors on online trading platforms.
AMC stock most recently rose 14.5 percent to $ 71.60 ($ 95) after nearly doubling on Wednesday and hitting a market cap of more than $ 28 billion. The US-listed shares of BlackBerry rose 29.1 percent, bringing their total earnings to over 130 percent that year.
The latest leg of the rally, which propelled shares of video game retailer GameStop Corp up 1,600 percent in January, was once again fueled by amateur inventors who collectively offer stocks of stocks with high short interest, which is bearish investors forces them to trade at a loss.
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“Although we reduced some positions over the course of the year, the majority of short sellers have enjoyed significant paper losses in the hope that retail investors will blink first and the losses will not be realized,” said Peter Hillerberg, co-founder of financial analysts Ortex.
“That looks like a flawed strategy now.”
It’s estimated that investors shorting AMC lost $ 2.75 billion on Wednesday alone, data from Ortex shows. According to refinitive data, the short stake in AMC is currently estimated at 21 percent of the free float.
Shares of other Reddit favorites, including GameStop and Koss Corp, rose 1.1 percent and 5.2 percent, respectively.
On Reddit’s WallStreetBets discussion thread, users continued to cheer the rally in the shares of AMC and BlackBerry.
“We can’t stop … they can’t stop us even though they try … we are real soldiers, we don’t die … we keep rolling …” wrote one user, u / ninja truth.
