Degeni from Reddit again in the lead role. AMC shares wiped out $ 9 billion

It was a wild ride. Just a few hours ago, the Reddit “degeny” (as they call themselves) sang hymns for preparing Wall Street wolves, earning $ 2.8 billion in stock shorts, on Wednesday alone.

Shorting is actually the opposite of ordinary investing in securities. During it, the investor sells the shares and bets that they will fall in price. Then he buys them back. But because of the way such deals are financed, he often has only a limited time window to do so, and if he doesn’t make it, he’ll get on the drum.

In recent days, Reddit users have managed to expose shares of the absurdly overvalued chain of AMC cinemas by 500 percent and short-lived investors have lost a total of 4.5 billion. On Thursday morning, however, the card reversed and several weeks of rising AMC Entertainment shares fell sharply. Along with several other “stonks” being driven up by a gang from Reddit.

Maybe it’s good to remember why they do it. Firstly, from the forum, secondly, in the name of fighting big investors who are making money on stock market bets, and thirdly, because of the vision of staggering appreciation. An example is Keith Patrick Gill, nicknamed “DeppFuckingValue”, who turned a $ 53,000 initial investment into a profit during a madness over a similarly overvalued GameStop. $ 50 million.

To put it in context: the value of AMC’s shares soared by 2,000 percent this year alone. Forbes.com recalls that it is one-fifth more than the busiest stock in the S&P 500, Marathon Oil.

And other Reddit stocks are in the pipeline, which the local herd of self-proclaimed degens whipped by 1,400 percent in the case of GameStop and by 120 percent in the case of the BlackBerry.

But he is slowly getting dark over this pastime. U.S. legislation already promises to look under the summer under scrutiny at services like Robinhood and eToro, through which global audiences participate in this madness and have a good time.

On Thursday morning, however, AMC shares received a blow after the company announced that its share price was indeed monumentally overvalued. During the day in America, AMC recorded a stock slump of up to forty percent, which erased the company $ 9 billion from market value.

AMC said it would sell almost 11.6 million shares at market price, but warned buyers not to do so only if that they are willing to lose all their money.

Along with the fall in the value of AMC, another fun-stalk of GameStop also fell, namely by thirteen percent, and no less-traded BlackBerry shares fell by six percent.

On the contrary, marijuana stocks, which are also very popular on Reddit, have been put on the card. The Sundial Gowers went up fifteen percent during it all.

Someone will obviously need a lot of grass.

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