Workhorse meme stock3/28/2023 ![]() “This is what a short squeeze looks like,” wrote one Reddit user last week about Avis Budget. The so-called apes on Reddit have figured this out. ![]() So if they wait too long to cover the short position, they could face major losses. Plus, short sellers have to eventually return the shares they’ve borrowed. If it hits $40, that’s a $20 loss, and so on - for every share they’ve shorted. The losses increase as the stock heads higher. If a stock that’s being shorted starts to go up for some reason - such as a good earnings report or news of a strategic partnership - short sellers may be forced to buy back shares en masse or risk incurring massive losses.īack to the $20 short seller example, if the company reports good news and the stock goes up to $30, the short seller is looking at a potential $10 loss if they cover at the price. It’s known as covering their short position.īut here’s where short sellers can run into trouble. If the short seller buys the stock back at $10 and returns it to the lender, they make a $10 profit. So say a short sells a borrowed stock when it’s trading at $20 and it falls to $10. The short seller then pockets the difference between what they sold at and the repurchase price. Shorts, often big hedge funds and other large institutional firms, will borrow a stock and sell it with the hopes that the price will fall and they can buy it back for less. ![]() (Photo by Noam Galai/Getty Images) Noam Galai/Getty ImagesĪvis stock more than doubles after strong earnings show no end to rental car boom The fourth phase allows outdoor arts and entertainment, sporting events without fans and media production. NEW YORK, NEW YORK - AUGUST 02: A person walks outside Avis car rental in Hell's Kitchen as the city continues Phase 4 of re-opening following restrictions imposed to slow the spread of coronavirus on Augin New York City. More than 20% of the shares of Avis Budget and Bed Bath & Beyond are being held by short sellers, aka shorts. (SNDL), have been targets of so-called short sellers. (WKHS) and cannabis company Sundial Growers Shares were up as much as 218% at one point.īed Bath and Beyond skyrocketed nearly 50% in a matter of a few days last week after announcing a partnership to sell some of its products at grocery store chain Krogerīoth Avis Budget and Bed Bath & Beyond have something in common with AMCĪll of these stocks, along with other meme darlings such as BlackBerry But the strength of the stock’s 108% surge the day after reporting results surprised many. (BBBY), have become so-called meme stocks that many professional investors have bet against … and have gotten burned for because of what’s known as a short squeeze.Īvis Budget reported solid earnings last week. Several stocks that have enjoyed extraordinary pops lately, such as Avis Budget gained as much as 17% following an upgrade at Cantor Fitzgerald, and Sundial Growers Inc., which has been popular with retail traders, climbed 31%.The individual investor army on Reddit that helped push GameStop and AMC to unprecedented heights earlier this year has found some more companies to rally around. Pot stocks were also among those that rallied Thursday. BlackBerry has now overtaken AMC in the number of WallStreetBets mentions. soared as much as 59%, the most in more than two years, BlackBerry Ltd. ![]() Still, some meme stocks continued the rally higher. Read more: AMC Exploits Rally to Sell Stock, Whipsawing Shares Again (1) dropped as much as 25% after announcing a potential share sale of its own. shares sank the most in four months before triggering a second volatility trading pause in the morning session after the movie theater operator announced plans for a potential stock sale. This comes as other retail investor favorites announced plans to sell shares. Other so-called meme stocks including GameStop Corp. Koss slid as much as 29% after closing at the highest level since early February. tumbled after surging in the previous session.īed Bath & Beyond shares fell as much as 24%, the steepest selloff since January, after notching a record advance Wednesday. (Bloomberg) - The latest meme stock frenzy started to unwind Thursday as retail-trader favorites like Bed Bath & Beyond Inc.
0 Comments
Leave a Reply.AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |