American Airlines Surges 10% in Early Trading: Could WallStreetBets Be to Blame?
Shares of American Airlines Group (NASDAQ: AAL) soared 10% higher on Wednesday morning, a day without any company news and when the rest of the airline industry was relatively quiet. It's hard to know for sure what is driving the stock higher, but my guess is it is getting swept up in the biggest story playing out on Wall Street right now.
Markets are abuzz right now discussing the dramatic moves higher by stocks including GameStop and AMC Entertainment Holdings. Both stocks have shot higher in recent days in large part due to a Reddit discussion community known as WallStreetBets.
WallStreetBets has been targeting stocks unloved by investors, seeking out companies with a large number of their shares sold short. A short sale is a bet that a stock price will fall, and at times a stock can surge higher if bulls can create a short squeeze that forces shorts to cover their pessimistic bets.
Source Fool.com
