June 7, 2021
It feels as though one week a month internet message boards collude to take on a stock and short squeeze institutional investors. This week they were on AMC again, but BlackBerry and Bed Bath & Beyond were caught up in the frenzy. AMC was still up over 100% at the end of the week despite falling 18% on Friday. Bed Bath & Beyond was up 50% on the week but slipped to just a 10% gain on the week. BlackBerry was up 45% on the week. AMC took advantage of the rally by issuing 20 million new shares and raising $800 million in cash. The trading was prompted by Reddit board WallStreetBets and frustrated mainstays on Wall Street. They moved no ratings to Bed Bath & Beyond, as the stock was nowhere near its fundamentals.
FINSUM + Magnifi: Meme trading has become a regular in the financial news cycle, but it seriously affects companies, and AMC truly was prepared to capitalize this time around.
Other news today: Biden’s Got a New Tax ‘Compromise’ for the Wealthy and The Return of the DOL Fiduciary Rule
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