Excerpt:
GameStop and AMC Entertainment tumbled in overnight trading, then rebounded sharply in the premarket Thursday following a meteoric rally amid a retail buying frenzy.
Shares of the brick-and-mortar video game retailer dropped 15.97% in extended trading, following a more-than 130% gain during regular hours. In premarket trading early Thursday, its shares bounced 30% higher.
The movie theater chain sank 26.58% in overnight trading, after shares soared 300% in extremely heavy trading. Its shares were little changed in premarket trading.
The pair have been popular targets in the “Wallstreetbets” Reddit chat room where a wave of at-home traders focus on heavily shorted stocks, pushing share higher and squeezing out short-selling hedge funds.
Author: Yun Li
Publication Date: 27 January 2021
Publication Site: CNBC