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Reddit Stock Picks Whipsaw After Manic Few Days of Trading

Published 01/28/2021, 06:37 AM
Updated 01/28/2021, 06:45 AM
© Reuters Reddit Stock Picks Whipsaw After Manic Few Days of Trading
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(Bloomberg) -- The wild ride for several companies targeted by short sellers showed few signs of abating Thursday as their shares erased earlier declines and resumed gains ahead of the U.S. market open.

Cinema group AMC Entertainment (NYSE:AMC) Holdings Inc. swung between gains and losses in premarket trading, and was last 4.2% higher after sliding as much as 22% at one point. The company erased its pandemic-induced plunge Wednesday with a 300% surge.

Retailer Express (NYSE:EXPR) also resumed gains and advanced about 9% after sliding as much as 19%. Other recent high-fliers, Bed Bath & Beyond Inc (NASDAQ:BBBY). and fashion firm Fossil Group (NASDAQ:FOSL) slumped in early trading.

Hedge funds are scrambling to cover short bets on the companies after a sharp rally fueled triple-digit gains in the stocks. The most-prominent example of the recent short squeeze mania, GameStop (NYSE:GME), see-sawed in premarket trading and was last up 23% after falling 4% earlier. The stock has surged 1,745% this year.

Read more: meStop Ascent Pauses After Reddit Forum’s Brief Outage

Those continuing to rise included underwear and swimwear manufacturer Naked Brand Group Ltd. (NASDAQ:NAKD), which added 83% after a 2-day gain of 240%, and headphone-maker Koss Corp ., (NASDAQ:KOSS) adding 28% after rising almost 10-fold since Tuesday.

(Updates with shares advancing and details throughout)

©2021 Bloomberg L.P.

 

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