That’s why this Reddit saga isn’t just about fundamentals. With malls dying across the world, those fundamentals aren’t about to change - and certainly haven’t changed so dramatically in the past few days and weeks to send its stock soaring nearly 700%. It was struggling before the pandemic, as video games went digital and Amazon began eating into its market share. Also, video games are a hot commodity in the stay-at-home era, particularly after the launches of the PlayStation 5 and Xbox Series X.īut GameStop faces many of the same problems that other retailers face. Similarly, GameStop may have been oversold and due for a comeback: Investors on social media had been arguing that GameStop was seriously undervalued and cheered earlier this month when the company added Chewy founder Ryan Cohen, who has been pushing a digital overhaul, to its board. titles simultaneously in theaters and on HBO Max. That’s a bold bet - blockbusters like the new James Bond movie keep getting pushed back, and CNN parent company WarnerMedia pledged to release all of its Warner Bros. Last year, the company said it doubted its ability to stay in business.īut AMC’s CEO told CNN Business Tuesday he is now hopeful (after an influx of cash) that the company can ride out the pandemic until people are ready go back to theaters. AMC wasn’t exactly a top performer before the pandemic, and the massive drop-off in theater attendance over the past 10 months sent it scrambling for cash. Shares of the new WSB plaything were up more than 230% Wednesday after members of the Reddit board were touting the stock and got #SaveAMC trending on Twitter.ĪMC is struggling financially - just like GameStop - and is a favorite stock of short sellers. Today’s target: AMC, the (very) struggling theater chain that just announced a nearly $1 billion lifeline to stay open. Their best-known bet is GameStop, which is up another 100% Wednesday after nearly doubling Tuesday and soaring 685% this year. A group on Reddit’s Wall Street Bets board have been promoting a number of stocks, hoping to squeeze short sellers that have been betting against them.
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