American Airlines shares rise

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American Airlines shares rose as the private investor war on short sellers continues

Shares of the Fort Worth-based carrier were up 50% in pre-market trading at one point Thursday after the company reported a $ 2.2 billion loss in the fourth quarter. amc stock

Tied up stocks for American Airlines rose Thursday morning, building on the momentum created by retailers who took Grapevine-based GameStop on a silly run. hugo boss stock

Read Also: American Airlines shares rise

Shares in Fort Worth-based American Inc. traded 20% to 50% higher in pre-market trading, even after the company reported a loss of $ 2.2 billion in the fourth quarter and a loss of $ 8.9 billion due to the coronavirus that devastated it in 2020.

A revolt against short-sellers on Wall Street turned some troubled stocks into popular underdogs, led by the one-week GameStop that sent them up nearly 1,000%. valpq

Much of that started with a group on the popular social media site Reddit called WallStreetBets that started targeting short sellers, whom users claimed were intentionally cutting stock prices for profit. tsla investing

A handful of companies like AMC, GameStop, and Blackberry saw their stock prices soar after stock retailers took up the issue. american airlines stock

According to Fox Business News, the Reddit group that started raising GameStop indicated that shares of American Airlines were also heavily exposed. American said investors shortly sold about 25 percent of its shares or about 160 million in total.

Fox Business News quoted a Reddit user as saying on the Wall Street Bets subreddit: AAL is getting too short when not all of the other airlines. american airlines stock price

This may be responsible for a 6% increase in the US share price on Wednesday while other airlines' shares fell. nio frankfurt stock

By late Thursday morning, the share price fell to just under $ 18 but was still up 8% for the day. It closed at $ 18.10 a share, up 9.3% for the day. american airlines stocks

Equity analyst Colin Scarula of CFRA Research said that with US stocks, "fundamentals are taking a back seat to the momentum and interest of retail investors as the primary drivers of stock prices in today's market."

“Given that AAL is well known to retail investors, and has a large interest shortage (about 30% of outstanding equity), we believe the stock is a high risk for a recent retail investor driven by the short pressures we have seen,” Scarula wrote in an investor update.

However, the share price increase is welcome news for the United States, which has suffered more on Wall Street than its competitors during the COVID-19 pandemic. united airlines stock

After starting 2020 with more than $ 26 a share, its stock fell below $ 9 a share in May as the company was losing close to $ 100 million a day. The modest but slow recovery from the coronavirus boosted the stock a little.

American Airlines CEO Doug Parker briefly acknowledged the move in a call Thursday with investors and reporters. united airlines

"I want to proactively announce that we will not comment or answer questions regarding recent activity in our share price," he said. apple stock

"As a general rule, we do not forecast the daily movement of our share price, and we will stick to that today." aa stock