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 Reddit traders were taking big hits on Tuesday.
Shares of AMC Entertainment, which rallied nearly 300% last week from a major short squeeze, was down 40% in morning trading. The iShares Silver Trust ETF, part of an attempted squeeze on the metal, was down 6%.
In other heavily shorted names that rallied last week, BlackBerry fell 10%, Express slipped 31%, Koss fell 41%, Naked Brand lost 27% and Nokia dropped 5% shortly after the opening bell. Genius Brands was down 3%.
Amid last week’s retail investing frenzy in heavily shorted names, Reddit-fueled traders drove GameStop, AMC Entertainment, Koss and others’ stock up, squeezing 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.
Shares of GameStop were down more than 50% on Tuesday.
Currently, Robinhood allows clients to buy only 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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