Will AMC Entertainment Go Bankrupt?

When the curtain closes on 2021, it'll undoubtedly go down as the "Year of the Retail Investor." Though retail investors began piling into the stock market during last year's wild volatility, they made their presence known in a big way by rocking the boat in January and February via short squeezes.

Without getting too far into the weeds, retail investors on Reddit and other popular social media chatrooms began banding together in January to buy shares and out-of-the-money call options in stocks with very high levels of short interest. In certain instances, where average daily volume was low, relative to what it is now, these retail groups were able to effect a short squeeze -- an event where short-sellers feel "trapped" by a rapidly rising share price and scurry for the exit. Since short-sellers need to buy shares to cover their positions, it only accelerates the move higher in a rapidly rising stock.

Although video game and accessories retailer GameStop started this short-squeeze craze, it's movie theater chain AMC Entertainment (NYSE: AMC) that's grown into the crown jewel of the retail movement.

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Source Fool.com