Short Sellers Lose $1 Billion on GME: AMC and GameStop (GME) Spearhead Meme-Stock Surge

  • Meme stocks, including GME, AMC, KOSS, and BlackBerry, are experiencing a significant rally, with short sellers reportedly losing nearly $1 billion on GameStop stock during Monday’s surge.
  • AMC Entertainment has raised $250 million of equity capital after selling 72.5 million shares, while Citi has lifted its price target on AMC stock.
  • GameStop short sellers suffered $838 million in market-t0-market losses during Monday’s rally, with analysts expecting more short covering on GME going forward.

Amid a significant rally in meme stocks, AMC Entertainment raises $250 million in equity capital, while GameStop short sellers face substantial losses. This article delves into the current state of meme stocks and their impact on the market.

AMC Raises Equity Capital

AMC Entertainment announced on Tuesday that it raised $250 million of equity capital after selling 72.5 million shares at an average price of $3.45 per share. Citi has subsequently lifted its price target on AMC stock to $3.20 from $3.10, noting that AMC’s Q1 revenue and adjusted EBITDA were in-line with its preliminary results from May 8. Citi expects AMC to use the new equity to pay down a portion of its debt, although it still believes AMC remains overvalued at current levels.

GameStop Short Sellers Suffer Losses

GameStop short sellers reportedly suffered $838 million in market-t0-market losses during Monday’s rally. Data firm S3 Partners indicates that GME stock had a 100/100 “squeeze score” prior to Monday’s trading, suggesting a greater risk of a short squeeze relative to its peers.

Roaring Kitty Sparks Rally

GameStop stock and AMC shares soared after Keith Gill, known by his social media name Roaring Kitty, returned to social media for the first time in three years. Gill, a key driver for the GameStop short squeeze, posted an image of a meme implying he is “getting serious,” sparking excitement among retail investors.

Recalling the Previous Short Squeeze

In 2021, GME stock surged 688% as individual investors coordinated a buying spree in the video-game retailer’s shares using online message boards. This caught short sellers by surprise, leading to a massive short-squeeze rally. The saga was detailed in the movie “Dumb Money.”

Current Meme Stock Action

GME stock soared another 98% early Tuesday, adding to its 74.4% rally Monday. AMC stock jumped 121% at the open Tuesday, rebounding to its highest price since September. Other meme stocks, including Koss and BlackBerry, also climbed early Tuesday as the GME and AMC rallies gained steam.

Conclusion

The current rally in meme stocks, sparked by the return of Roaring Kitty, has led to significant market activity. While AMC has capitalized on the trend by raising substantial equity capital, GameStop short sellers have faced considerable losses. As the situation continues to unfold, investors are closely watching these stocks and their potential impact on the market.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.
spot_imgspot_imgspot_imgspot_img

Latest News

spot_imgspot_imgspot_imgspot_img

PRO Analysis

Crypto Markets Plunge Up to 5% Awaiting U.S. Data: Key Altcoins Affected – BTC, ETH, ADA Analysis

The cryptocurrency markets are eagerly awaiting the...

FTSE 100 Index Analysis: Key Insights for May 30, 2024 – Market Trends and Projections

Cryptocurrency markets have been experiencing...

AI Predicts 2024 End-of-Year Surge for XRP and SHIB Coins: Expert Analysis Inside!

The crypto markets have been a rollercoaster...

Crypto Market Daily: BTC, ETH, NOT, AR, XRM Price Analysis and Trends

Cryptocurrency markets witnessed significant volatility today, with...
Gideon Wolf
Gideon Wolfhttps://en.coinotag.com/
GideonWolff is a 27-year-old technical analyst and journalist with extensive experience in the cryptocurrency industry. With a focus on technical analysis and news reporting, GideonWolff provides valuable insights on market trends and potential opportunities for both investors and those interested in the world of cryptocurrency.
spot_imgspot_imgspot_imgspot_img

Tata Steel (TATA) Stock Plummets 5% Post Disappointing Q4 Earnings: Buy, Sell, or Hold?

Shares of Tata Steel slumped nearly 5% in today's trade to reach ₹165.50 apiece, a day after the company reported...

Q4 2024 Results Propel [Coin Name] (SYM) 10% Surge Amid Market Downturn

The stock market today is experiencing significant volatility due to rising US treasury yields and soaring crude oil prices amidst...

Aimtron Electronics (AIMT) IPO Sees 90% Subscription on Day 1, Signaling Strong Investor Demand

The initial public offering (IPO) of Aimtron Electronics Ltd opened for subscription today, May 30, and has been receiving strong response from...