FUBO - Why AMC Entertainment FuboTV and SmileDirectClub Rocketed Higher This Week
Shares of meme stocks AMC Entertainment Holdings (NYSE: AMC) , fuboTV (NYSE: FUBO) , and SmileDirectClub (NASDAQ: SDC) were big winners this week. Through Thursday trading, they rose 14.8%, 27.4%, and 20%, respectively.
Big bounces can happen when your stock has been beaten down and is heavily shorted , as these three were. Even after this week's gains, AMC Entertainment is down 25% over the past year, with 18.4% of its stock sold short as of July 15. SmileDirectClub is down 74%, with 21% of its shares sold short. Meanwhile, fuboTV is down 87%, with nearly 30% of shares sold short.
Two kinds of catalysts likely fueled this week's rally. Positive macroeconomic news may have caused shorts to cover, while drawing in retail investors to speculate in more risky names. Additionally, company-specific developments for all three companies may have fueled above-average gains.
For further details see:
Why AMC Entertainment, FuboTV, and SmileDirectClub Rocketed Higher This Week