A sign hangs in front of an AMC theater on January 27, 2021 in Chicago, Illinois. Shares of AMC Entertainment more than quadrupled today as investors continue their buying spree on heavily shorted stocks.
Scott Olson | Getty Images
Besides GameStop, other popular short squeeze targets among the Reddit crowd were taking big hits on Tuesday.
Shares of AMC Entertainment, which rallied nearly 300% last week from a major short squeeze, is down 40% on Tuesday. The iShares Silver Trust ETF, part of a silver squeeze the crowd attempted, is down 6%.
Other heavily shorted names that rallied last week are also lower on Tuesday, like BlackBerry, which fell 10%. Express slipped 31%, Koss fell 41%, Naked Brand lost 27% and Nokia dropped 5% shortly after the opening bell. Genius Brands is down 3%.
Amid a retail investing frenzy in heavily shorted names last week, Reddit-obsessed traders drove GameStop, AMC Entertainment, Koss and others’ stock up in an effort to crush the hedge funds shorting the names. This week, those stocks are coming back down to earth as Robinhood and other trading apps continue to limit buying of stocks and options contracts and as the squeeze trade lost momentum and enthusiasm.
Shares of GameStop are down more than 40%, brining its week-to-date losses to nearly 60%.
Currently, Robinhood only allows clients to buy 20 shares of GameStop and 350 shares of AMC Entertainment. Clients can by 700 shares of Blackberry and 1,000 shares of Koss. However, if Robinhood clients own more than the share limit, they can’t purchase any shares.
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