GameStop And AMC Shares Rally
Any investor in the stock market cannot have failed to take in the furore surrounding GameStop and AMC Entertainment shares in recent times. They really have been the biggest show in town and made huge waves in the world of investing. This makes news of both shares rallying to their highest levels for a while on Wednesday 26th May 2021 intriguing.
AMC Entertainment And GameStop Show Impressive Gains
By the time the market closed, GameStop had seen its price rise by 15.8% to $242.56 per share.
This is believed to be the highest level it has hit since Mid-March 2021. AMC Entertainment stock prices shot up even more – by a huge 19.2%!
This left them at $19.56 per share come the close of play and at their highest level since the end of January 2021. This solid performance saw CFRA up its price target figure for AMC shares from $2.50 to $18.
Rally Has Been Building In Recent Weeks
Keen followers of the stock market will know that this rally has been gaining traction for a few weeks. AMC and GameStop shares have been on a steady climb and this really picked up during May.
Much of this is down to shares like AMC and GameStop still being listed on Reddit’s WallStreetBets forum. GameStop is 70% above its closing low for May and AMC has seen a 95% rise in May so far.
Bearish Investors Forced To Run For Cover
Of course, this type of recent activity has seen those previously bearish on both shares ducking for cover.
This has seen some needing to buy shares to cover short-sale loans. 958,000 GameStop shares have been picked up by bearish investors recently for example.
This sees 11.55 million GameStop shares sold short currently. With short-sellers in GameStop reportedly down almost $7 billion in year-to-date losses on the market, these investors will be keeping a keen eye on how things pan out moving forward.
Can The Rally Continue?
This is the million dollar question for investors when it comes to AMC and GameStop shares.
While it is impossible to say for sure, the rumours of GameStop building an NFT platform and advertising for workers might keep it pushing higher. AMC Entertainment’s recent surge is certainly promising and further enthusiasm from retail investors could well keep its price moving upwards.