AMC Entertainment Holdings
stock tumbled this week after the theater chain announced plans to sell stock to a private investment firm. The move extended pain amid what has been a brutal year for meme stocks.
Shares of firms such as AMC (ticker AMC),
GameStop
(GME), and
Bed Bath & Beyond
(BBBY) surged in January 2021 amid heavy interest from both short sellers betting against the stocks, and retail traders on social media sites such as Reddit and Twitter. After short bets blew up that month, Wall Street firms wary of another short squeeze began considering data on online ticker chatter.
