Like a scene out of The Big Short, or maybe The Wolf of Wall Street — some finance movie, you get the idea — AMC Entertainment has become one of the day’s most popular stocks through risky attempts to “short” the stock by hedge funds, according to CNBC. Basically, that means borrowing shares, selling them, then hoping to buy them back at a lower price before returning them to the lender. But why AMC, a movie theater chain struggling during the COVID-19 pandemic? Redditors on r/wallstreetbets tried to organize a buying effort in hopes of hurting the hedge funds that are trying to profit specifically off losses in stock value by companies like AMC, as The Verge explained. It’s the same reason why they targeted GameStop yesterday, and will probably target something weirder like, say, oh, Sea World tomorrow. But at the end of the day, we’re just an entertainment website, and this writer got a C-plus in his college economics class. Where’s Margot Robbie in a bubble bath to explain these things when you need her?
Photo: Noam Galai/Getty Images