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Are AMC & GameStop a good investment?

AMC and GameStop are Wall Street-banished investments with reasonable floats and enough naysayers to trigger a short squeeze. Both stories will likely end badly, but the AMC thesis will probably fall short of GameStop's meteoric rise. GameStop had 71.2 million of its 69.7 million shares sold short ahead of the squeeze play.

Are GameStop and AMC the posterchildren of the retail trader movement?

Two traders on the risks and rewards Investors may unwittingly have exposure to GameStop and AMC. Those two, the posterchildren of the retail trader and reddit movement, are among the largest components in the IWM Russell 2000 ETF. GameStop has been a large contributor to the XRT retail ETF ’s 49% gain this year.

Did GameStop stock get a boost this year?

As shares of GameStop got a boost, so too did other chronically shorted meme stocks that redditors have sent on a wild ride this year. For example, AMC’s (AMC) stock was up 21% and Koss (KOSS) rose 57%. Macy’s (M) rose about 8%.

Is AMC a good stock to buy?

AMC has a beefy 39 million shares shorted, but that's well shy of the more than 212 million shares it has outstanding -- and counting. AMC is also more likely than GameStop to take advantage of its trading resurgence to crank out more shares at the higher price points.

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