<p><strong><img src=”https://static4.businessinsider.com/image/5cd44bb6f06717028622153d-2400/amc ap.jpg” border=”0″ alt=”AMC AP” data-mce-source=”AP”></strong></p><bi-shortcode id=”summary-shortcode” data-type=”summary-shortcode” class=”mceNonEditable” contenteditable=”false”>Summary List Placement</bi-shortcode><ul><li><strong>AMC stock surged as much as 160% in premarket trading on Wednesday.</strong></li><li><strong>Day traders also sent GameStop shares up as much as 132%, and BlackBerry and Bed Bath & Beyond up about 30%.</strong></li><li><strong>Amateur investors are targeting heavily shorted stocks to make quick profits and squeeze short-sellers.</strong></li><li><strong><strong><a href=”https://www.businessinsider.com/”>Visit Business Insider’s homepage for more stories</a>.</strong></strong><hr></li></ul><p><a href=”https://markets.businessinsider.com/stocks/amc-stock”>AMC</a> shares skyrocketed as much as 160% in premarket trading on Wednesday as day traders piled into heavily shorted stocks for a third consecutive day.</p><p>Frenzied buying also drove <a href=”https://markets.businessinsider.com/stocks/gme-stock”>GameStop</a> shares up as much as 147%, <a href=”https://markets.businessinsider.com/stocks/bb-stock”>BlackBerry</a> up 31%, and <a href=”https://markets.businessinsider.com/stocks/bbby-stock”>Bed Bath & Beyond</a> up 27%.</p><p>Amateur investors have gathered, most notably on Reddit forum r/wallstreet bets, to pinpoint stocks they can buy en masse and score fast profits. They frequently target stocks that are popular shorts, as driving their stock prices up can pressure short-sellers into buying shares back to cover their positions, which sends prices even higher.</p><p><strong data-stringify-type=”bold”><em data-stringify-type=”italic”>Read More:</em></strong><em data-stringify-type=”italic”> </em><em data-stringify-type=”italic”><a href=”https://www.businessinsider.com/blackrock-ceo-larry-fink-letter-climate-change-risk-companies-investors-2021-1″ target=”_blank” rel=”noopener noreferrer” data-stringify-link=”https://www.businessinsider.com/blackrock-ceo-larry-fink-letter-climate-change-risk-companies-investors-2021-1″ data-sk=”tooltip_parent”>The CEO of the world’s biggest asset manager warns that companies will ‘suffer’ if they don’t cut carbon emissions. Read excerpts from his letter to CEOs here.</a></em></p><p>Day traders also see the strategy as a way to stick it to Wall Street. They have <a href=”https://markets.businessinsider.com/news/stocks/steve-cohen-ken-griffin-invest-3-billion-gamestop-short-seller-2021-1-1030003305″>targeted hedge funds</a> such as Melvin Capital, which had negative positions in 17 US-listed stocks at the last count. Four of thoseGameStop, Bed Bath & Beyond, Dillard’s, and Ligand Pharmaceuticalsjumped at least 10% in premarket trading on Wednesday.</p><p>The GameStop frenzy is especially divisive. Billionaire investor Chamath Palihapitiya <a href=”https://markets.businessinsider.com/news/stocks/chamath-palihapitiya-gamestop-investment-buys-115-call-options-reddit-wallstreetbets-2021-1-1030005801″>bought bullish options</a> on the video-game retailer’s stock on Tuesday at the urging of his Twitter followers, while Tesla CEO Elon Musk <a href=”https://twitter.com/elonmusk/status/1354174279894642703″>tweeted</a> the word “GameStonk!!” with a link to the Wall Street Bets subreddit.</p><p><strong data-stringify-type=”bold”><em data-stringify-type=”italic”>Read More:</em></strong><em data-stringify-type=”italic”> </em><em data-stringify-type=”italic”><a href=”https://www.businessinsider.com/stocks-to-buy-sports-betting-picks-growth-industry-morgan-stanley-2021-1″ target=”_blank” rel=”noopener noreferrer” data-stringify-link=”https://www.businessinsider.com/stocks-to-buy-sports-betting-picks-growth-industry-morgan-stanley-2021-1″ data-sk=”tooltip_parent”>MORGAN STANLEY: Buy these 9 sports-betting stocks ahead of the industry’s expected legalization in 12 states this year and its growth to $10 billion in 2025</a></em></p><p>In contrast, Michael Burry of “The Big Short” fame <a href=”https://markets.businessinsider.com/news/stocks/big-short-michael-burry-gamestop-stock-price-rally-insane-dangerous-2021-1-1030006593″>condemned the frenzied buying of GameStop stock</a> as “unnatural, insane, and dangerous” in a swiftly deleted tweet on Tuesday. The investor, who has <a href=”https://markets.businessinsider.com/news/stocks/big-short-michael-burry-1500-percent-gain-gamestop-stake-2021-1-1030004676″>likely made a fortune on GameStop</a>, also called for legal and regulatory action against those involved.</p><p><a href=”https://markets.businessinsider.com/news/stocks/amc-stock-price-day-traders-gamestop-blackberry-bed-bath-beyond-2021-1-1030008759#comments”>Join the conversation about this story »</a></p> <p>NOW WATCH: <a href=”https://www.businessinsider.com/what-its-like-to-do-your-own-taxes-for-the-very-first-time-2018-2″>July 15 is Tax Dayhere’s what it’s like to do your own taxes for the very first time</a></p>
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