Bed Bath & Beyond and AMC Entertainment are the newest targets of speculation for retail investors, creating a nightmare scenario for hedge funds betting against these once beat-up stocks.
Shares of Bed Bath & Beyond popped as much a 40% and shares of AMC Entertainment soared as much as 70% on Monday, as individual investors pile into the names while hedge funds rush to cover their losses from shorting the stocks. Shares of Bed Bath & Beyond closed up 1.5% and AMC closed up 25.9% on Monday.
The pair joins GameStop, which rose nearly 150% at one point on Monday, in their short-squeeze rallies. Troubled video came retailer GameStop has rallied 300% in January alone, skyrocketing to over $150 a share at one point on Monday. The stock’s rally doesn’t seem to be slowing down despite valuation concerns from Wall Street firms. Shares of GameStop closed up 18.1% on Monday.