The legend of GameStop and AMC stock continues as new data from financial analytics firm ORTEX estimates that investors have lost $930 million on their short position for the aforementioned shares. In fact, investors lost $210 million in AMC shorts and $227 million in GameStop shorts.
Data later goes on to say that the short interest for the stock is high; AMC short interest is at 18.3% of free float and GameStop’s short interest is at 21.8% free float according to the same data.
This turn of events can be attributed to the recent push by online retail investors to recreate January’s stock insanity that forced out short sellers on GameStop, AMC, and other stocks. #SqueezeAMC was trending on Twitter Monday, and in that rally, GameStop’s shares went up 13% and AMC shares closed 7.5% high, further building on 36% the stocks had the previous week.
— Rafiki🇨🇦 (@Rafiki2damoon) May 18, 2021
Rallies by retail investors have been happening on and off this past year, and it has resulted in short-sellers losing billions of dollars, forcing many to cut their losses while investors laugh all the way to the bank.
Short Sell Brewing
While GameStop and AMC shares going up is good news, there are still those out there who have a bad feeling and believe that a short sell might happen soon, like the founder of HypeEquity. HypeEquity is a tech platform that collects social media activity and mentions on individual stocks and uses that data to see what the sentiment is towards a particular stock.
Access wider trends: https://t.co/4Z0lTkVRF9
— Hype Equity (@HypeEquity) May 18, 2021
In the case of GameStop and AMC shares, about 8% of comments mentioned the word “squeeze”, and the founder of Hyper Equity, Travis Rehl, even outright said, “There’s a clear desire for a short squeeze either today or very soon.”
A Debt of Gratitude
Despite the desire to short sell, retail investors are simply refusing hedge funds, institutional investors, and the like from doing so; in fact, just after 11 am EST on May 18th, GameStop shares went up more than 4% in less than 10 minutes, and briefly positive as well while AMC went up 3%. These actions plus the rallies throughout the year have not gone unnoticed as in early May, AMC CEO Adam Aron thanked Reddit and Robinhood investors in an earnings call for surging the stock 500% so far.
GameStop also said thank you but in a more subtle and coy way as the official GameStop Twitter account tweeted a picture of an astronaut drinking a beer on the moon alluding to the investing motto, “To the Moon!”
GameStop would later delete that tweet, but would continue playing coy as the next day, the account tweeted “moass” a WallStreetBets acronym that stands for “mother of all short squeezes”. Despite their best efforts, it doesn’t look like these short sellers will be getting their way with the internet’s meme stocks. During the first quarter of this year, retail trading participation went up 24% according to data by Larry Tabb of Bloomberg Intelligence. According to his data, whichever stocks that group favored went up exponentially.