Gamestop And AMC Shares Fluctuate Amongst Volatile Market With An Impending Short Squeeze Predicted

Last year GameStopGME
and AMC shares alarmed the market as a slew of retail investors banded together to make trades on the stock across online chatrooms, creating sizable short squeezes. The movements caused several damaging issues within hedge funds and other short-sellers as the move went against market predictions.

Last month, the market saw a glimpse of what that looked like last year as shares in GameStop rose 30% at one point, and AMC Entertainment shares gained more than 20%. At the end of a particularly volatile day of trading in May, both stocks rose 10.1% and 8% respectively.

Regardless of the day’s movements, both stocks are noticeably off their high positions from the early portion of 2021.

GameStop, which climbed as high as $483 per share last January, on an intraday basis, concluded at $89.57 per share after the surge last month. AMC, which was at an intraday high of $72.62 in June 2021, closed at $11.20 per share.

The pandemic rocked both companies to the core but the move from the retail investors in 2021 was a big coup for both institutions. AMC and GameStop used their elevated share prices to raise capital and sell additional stock, giving both entities vital breathing room. Shareholders were even given incentives by AMC at physical movie theaters.

Anthony DeGalbo, founder of OnlyOptionsTrades, an educational platform that teaches people how to invest in the financial markets, said about the movements, “The popularity of the stock market has increased. It used to be closed off to certain people and now it’s widely available and understood, that’s what we aim to do at OnlyOptionsTrades. We provide classes six nights a week to allow people to understand trading and make moves like this.”

On the future of small retail trading, DeGalbo said, “In 2021 alone we did over 3 million in revenue, our first full year of business. There is an appetite amongst people to understand the markets and get involved. We added over 10,000 members in 2021 alone, and we’ll very likely supersede that this year.”

“I think we’ve built up this base because we don’t believe in risky investing or gambling. We believe people should study the market and execute, and you can see from the AMC and Gamestop situation that regular retail investors can out-maneuver bigger firms this way.”

AMC has since used its cash to further expand, looking ahead to post-pandemic regulation at the height of the pandemic in 2021. It seems their bet may have paid off with cinemas and theaters re-opening in most jurisdictions and beginning to mark generous profits.