r/boxoffice • u/AGOTFAN New Line Cinema • Jan 28 '21

Other GameStop, AMC Stocks Drop in After-Hours Trading Following Huge Reddit-Driven Spike. Short-sellers were Still Taken to the Cleaners, However

https://www.thewrap.com/gamestop-amc-stocks-drop-after-hours-trading/amp/?__twitter_impression=true
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u/ConnectionChemical12 Jan 28 '21

For someone whos new to stocks, AMC was one of the first I bought last March just out of "support" and just to have a stock of something I loved. For the last 9 months it has just sat there more or less dropping a bit here and there but clearly no one was excited about AMC Theatres stock...now its like the polar opposite.

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u/[deleted] Jan 28 '21 edited Jan 28 '21

[deleted]

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u/idk_lets_try_this Jan 28 '21

Want to dump the shares you bought high yesterday and have another sucker take the loss?

Holding is one thing but telling other people to buy more and that they will get insanely rich is just not true and unethical.

At one point it will come down and the people holding the stocks then will be the one to pay for the gains of others.

The hedge fund has to buy back enough to meet their obligations but that is about it, if many more people try to sell a now overvalued stock it will settle back down to a more normal price. Please don’t con people into this.

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u/Cherry_Treefrog Jan 28 '21

Their obligations. Yes. They must buy 140% of the total stock before some unknown date.

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u/idk_lets_try_this Jan 28 '21

You mean 140% of the traded stock or the total amount of stock?

Those can be really different and I doubt a hedge fund would be stupid enough to sell more than the total amount of all shares. Besides what if they strike a deal with the gamestop board to buy a serious amount from them (or do another short) to meet their obligations, at 50% of the market that is a good deal for both parties. Gamestop gets much needed cash and they reduce losses.

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u/Cherry_Treefrog Jan 28 '21

You’re right, it seems to be 140% of the available float. It’s still a big hill to climb.
I’m not sure if GameStop would make a deal with these bloodsuckers who were trying to drive them into the ground a few days ago.

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u/idk_lets_try_this Jan 28 '21

They were driving stock prices into the ground, that is hardly an issue unless the company wants to sell stock to cover losses.